POSCO Holdings Q4 2024: Contradictions in Steel Market Outlook, Tariff Impacts, and Pricing Strategies

These are the key contradictions discussed in POSCO Holdings' latest 2024Q4 earnings call, specifically including: Steel Market Outlook and Strategies, Impact of Tariffs on North America, Market Outlook and Cost Management, and Steel Plate Pricing Strategy:



Steel Industry Challenges and Profitability:
- POSCO Holdings reported a consolidated account revenue of KRW72.7 trillion with an operating profit of KRW2.2 trillion, both declining from the previous year.
- The declines were due to suppressed steel prices in Asia, caused by excess volume exports from China's construction industry recession.

Energy Materials Impairments and Recovery Efforts:
- The Energy Materials business recorded KRW278 billion losses, with the deficit widening further, primarily due to inventory value impairment.
- Despite this, successful completion of several EV battery material plants and plans to stabilize operations are expected to lead to a recovery over the medium term.

Restructuring and Cash Generation:
- POSCO Group dissolved 45 assets and generated KRW662.5 billion in cash, with KRW100 billion used to buy back and retire treasury shares.
- These restructuring efforts are aimed at enhancing asset efficiency and financing future growth investments.

2025 Strategic Focus:
- POSCO plans to drive progress in overseas growth investments and carbon neutrality efforts in the steel sector.
- In Energy Materials, the focus is on acquiring quality lithium assets and ramping up new plants ahead of schedule.