Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What is the current state of the steel market, particularly in the automotive and shipbuilding sectors, and how does the Chinese stimulus package affect POSCO's outlook? A: Hong Yoon-sik, Head of Marketing Strategy, explained that the steel market is experiencing mixed signals, with some rebound due to China's stimulus package. However, prices have started to fall again. In the automotive and shipbuilding sectors, POSCO has half-year contracts, and negotiations for the next year may see price adjustments. The Chinese stimulus package initially boosted prices, but they have since adjusted, reflecting market realities.
Q: How is POSCO handling non-essential assets and underperforming businesses, and will these costs be consolidated at the end of the year? A: Lee Ju-Tae, Chief of Corporate Strategy, stated that restructuring is on schedule, with some divestments generating profits. While there will be some losses, the overall impact is expected to be positive, with profits outweighing losses.
Q: Can you provide details on POSCO's investment in India, including the type of steelmaking process and the project's expandability? A: Chan Sung Mae, Chief of Steel Business, mentioned that the initial phase will involve a blast furnace and shaft method, with potential for expansion. The site in Odisha is strategically chosen for its proximity to local rolling mills, ensuring a steady supply chain.
Q: What is POSCO's strategy for addressing the potential oversupply in the Indian steel market, and how does it compare to the Chinese market? A: POSCO believes that despite potential oversupply, their focus on high-end products will mitigate risks. The Indian market is growing steadily, unlike the rapid growth seen in China in the past, and POSCO is confident in its product portfolio to meet demand.
Q: How does POSCO plan to achieve carbon neutrality in its Indian operations, and how will this impact its overall carbon emissions strategy? A: POSCO aims to follow local regulations in India, with a focus on realistic approaches to carbon reduction. They plan to implement advanced technologies like hydrogen mix and CCS to align with their carbon neutrality goals by 2050.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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