1. Hyundai Steel’s Q2 Earnings: A Deep Dive into the Decline
Hyundai Steel’s Q2 2025 earnings showed a significant decline year-over-year. Sales plummeted by 50.5% to KRW 11.509 trillion, operating profit fell by 48.3% to KRW 82.7 billion, and the company reported a net loss of KRW 16.994 billion. This downturn is primarily attributed to the overall slowdown in the steel industry and decreased demand.
2. The US Investment: A Double-Edged Sword?
The approximately $5.8 billion investment in a US electric arc furnace represents a critical juncture for Hyundai Steel. While offering access to the North American automotive steel sheet market and a foundation for low-carbon steel production, this large-scale investment also carries inherent risks. Potential delays, cost overruns, and unforeseen challenges cannot be ignored.
3. August 26th IR: Key Insights for Investors
The Non-Deal Roadshow scheduled for August 26th will provide detailed insights into the Q2 results and the US investment plan. Investors should pay close attention to management’s commentary on the company’s future strategy and vision. Questions regarding the specifics of the US investment and risk mitigation strategies are crucial.
4. Investor Action Plan
- Carefully analyze the information presented during the IR.
- Scrutinize the details of the US electric arc furnace project, including investment costs and timelines.
- Monitor the evolving steel market dynamics closely.
- Exercise caution and make informed investment decisions, considering potential short-term volatility.