POSCO Holdings' stock is showing strength following news that the United States will triple tariffs on Chinese steel and aluminum.
As of 10:08 AM on the 18th, POSCO Holdings' stock price is trading at 390,500 KRW, up 19,500 KRW (5.26%) compared to the previous trading day. The news that the Joe Biden administration will triple tariffs on Chinese steel and aluminum has caused steel-related stocks to surge simultaneously.
On the same day, Jang Jae-hyuk, a researcher at Meritz Securities, said about POSCO Holdings, "It is difficult to estimate the exact timing of a full recovery in the steel market, but the recent sharp decline in coking coal and iron ore prices is a positive factor for the Q2 rolling margin (the figure obtained by subtracting raw material costs from product prices) this year." He added, "A gradual increase in lithium prices caused by a slowdown in supply growth is currently underway."
He stated, "According to POSCO Holdings' plan, the performance of the lithium business division can be confirmed as early as next year. If the construction schedule and other plans proceed without issues, a mid- to long-term approach reflecting the value of the lithium business is valid," maintaining a buy rating and a target stock price of 630,000 KRW.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
