[Click eStock] "Hyosung Advanced Materials, Tire Cord Contract Volume Expected to Increase"

Hyosung Advanced Materials is expected to recover its performance this year, supported by an increase in the supply volume of its main product, tire cords.

Hyosung Advanced Materials Tire Cord

Lee Dong-wook, an analyst at IBK Investment & Securities, forecasted on the 8th, "As inventory adjustments and expansions by major global tire companies are completed, the contracted volume of tire cords this year will increase compared to last year." The major customers to whom Hyosung Advanced Materials supplies tire cords include global tire companies such as Michelin, Goodyear, Continental, Toyo Gosei, Hankook Tire, Kumho Tire, and Nexen Tire.

The analyst also predicted, "As the tire supply and demand situation improves, the overall supply price of tire cords will also rise." He analyzed, "Sales of new original equipment (OE) and replacement (RE) tires in North America and Europe are increasing, and the timing of electric vehicle tire replacements is coinciding, but the supply volume is not increasing." He emphasized, "In January this year, RE/OE tire replacement demand increased significantly compared to last year across all global regions, and major tire companies such as Pirelli, Bridgestone, Continental, and Hankook Tire have set higher tire market demand and performance targets this year compared to last year, reflecting the supply and demand situation."

He added, "Although Tamsol Fibers has recently shown a downward price trend, demand for its main products remains solid, and with the operation of production facilities No. 6 and No. 7 starting this year, the supply volume will increase," forecasting, "The carbon fiber sector is also expected to continue its profit growth trend this year."