[Click eStock] "Hyundai Steel, Strong Performance in Q2... Blast Furnace Margin and Steel Pipe Earnings Expected"

[Asia Economy Reporter Yoonju Hwang] Hi Investment & Securities maintained its 'Buy' rating and target price of 57,000 KRW for Hyundai Steel on the 28th, expecting strong performance in the second quarter following the first quarter.

Yoonsang Kim, a researcher at Hi Investment & Securities, stated, "Hyundai Steel's consolidated operating profit for the second quarter is expected to be 771 billion KRW, a 10.4% increase compared to the first quarter."

Researcher Kim anticipated that the performance momentum would continue in the second quarter as concerns over margin contraction in the blast furnace segment are alleviated and the steel pipe segment shows strong results.

He explained, "Steel prices have risen due to the Russia-Ukraine war, and favorable negotiations on prices with downstream customers are unfolding positively for steelmakers amid expectations of China's economic stimulus. As coking coal prices have also stabilized, contrary to concerns, the blast furnace segment's margin in the second quarter is expected to be similar to or better than that of the first quarter."

Regarding the steel pipe segment, he analyzed, "Due to the favorable conditions in the U.S. steel pipe market, overseas subsidiaries such as Houston are expected to show solid performance. U.S. steel pipe prices will continue for the time being due to increased energy development demand in the U.S. following sanctions on Russian crude oil and natural gas."