[Market Focus] Hyundai Steel Surges Over 8% on Earnings Recovery Expectations

Shares of Hyundai Steel are showing strong performance as business conditions improve and earnings are expected to recover.

As of 10:34 a.m. on July 11, 2025, Hyundai Steel was trading at 35,750 won, up 2,700 won (8.17%) from the previous trading day.

Hanwha Investment & Securities maintained its "Buy" rating and target price of 62,000 won for Hyundai Steel on this day.

The company projected second-quarter consolidated sales of 6.014 trillion won, down 0.5% year-on-year, and operating profit of 95 billion won, down 3.2%. However, it expected operating profit to exceed the market consensus by 10.6%. The rebar spread rebounded, leading to a return to profitability, and the hot-rolled spread (the difference between product price and cost) also increased. The company positively assessed the fact that product prices rose even as raw material costs declined.

Choi Moonseon, an analyst at Hanwha Investment & Securities, stated, "The steel industry already hit bottom in the first quarter," and added, "In the second half of the year, production cuts in China and full-scale restructuring next year will help the industry cycle continue its upward trend." He further commented, "The stock price has risen as the likelihood of restructuring in China has increased, but this is only the beginning," and predicted, "An upward phase for both the cycle and the stock price will unfold through 2027."