Kim Yoon Sang

Inquired about POSCO's strategy for the challenging East Asian and American steel markets, and the outlook for nickel and stainless steel prices given global trade dynamics and supply issues.

Answer

POSCO stated they are managing challenges in Asia by addressing unfair trade. They have limited direct exposure to US trade risks by leveraging Mexico. They believe nickel prices have bottomed out around $16,000 and expect the stainless steel market to improve in Q4. They also noted that IRA-compliant nickel supply remains very limited.

Yoon-sang Kim of HI Investment & Securities asked about POSCO's long-term strategy for the Asian steel market amid Chinese exports, its steel strategy for the Americas considering political changes, and the outlook for nickel and stainless steel prices.

Answer

Ki-Seop Jeong, Head of Marketing Strategy, stated that while Southeast Asia is challenging, POSCO is focused on managing unfair trade from China into Korea. He noted that the company's indirect sales model in the Americas minimizes direct risk from U.S. trade policy. He also projected that nickel prices have bottomed out and expects stainless steel prices to improve in Q4. An executive from Nickel Operations added that massive Indonesian supply will limit nickel price increases.

Inquired about the 2024 business plan and earnings outlook for each business segment, nickel price projections and their impact on investment, and the strategy for managing fluctuating coking coal prices.

Answer

The company provided a segment-by-segment outlook for 2024: Green Infrastructure expects stable performance, E&C may see a slight slip, Green Materials expects to turn profitable, and Steel anticipates a difficult Q1 followed by recovery. Nickel prices are believed to be near the bottom with limited downside, and investment plans will be adjusted but not dramatically changed. High coking coal prices are expected to stabilize as new supply comes online, and the company's procurement strategy remains disciplined.