1. Hyundai Steel’s Q2 Performance: What Happened?
Hyundai Steel reported an operating loss of ₩7.5 billion in Q2 2025, with revenue of ₩46.8 trillion and a net loss of ₩18.2 billion. These figures fell significantly short of market expectations, marking the second consecutive quarter of losses.
2. Reasons for the Downturn: Why Did This Happen?
- Rising Raw Material Prices: Increased costs for steel scrap, coal, and iron ore have squeezed profit margins.
- Weak Steel Demand: A slowdown in the global steel market has led to lower product prices and reduced operating rates.
- US Investment Burden: While strategically important for long-term growth, Hyundai Steel’s US investments have created short-term financial strain.
3. Macroeconomic Outlook: What’s Next?
High interest rates and fears of a global recession are negatively impacting steel demand. The volatility of raw material prices and exchange rates requires close monitoring. The slow recovery of the domestic construction market in Korea also poses a challenge for Hyundai Steel.
4. Investor Action Plan: What Should You Do?
While Hyundai Steel’s short-term outlook remains uncertain, investors should monitor key factors such as global economic recovery, raw material price stabilization, and the success of the company’s investment initiatives. A thorough assessment of the steel industry outlook, the company’s fundamentals, and potential risks is crucial before making investment decisions. Seeking professional advice and diversifying investments are recommended strategies.