CHOSUN REFRACTORIES and POSCO’s KRW 240 Billion Deal: What Happened?
On September 24, 2025, CHOSUN REFRACTORIES announced a KRW 240 billion supply contract with POSCO for blast furnace mud refractories. The contract spans one year, from October 1, 2025, to September 30, 2026, and represents 4.80% of CHOSUN REFRACTORIES’ annual revenue.
Analyzing the Impact: Pros and Cons
Positive Aspects:
- • Secures short-term revenue and stability
- • Strengthens the partnership with POSCO
- • Potential for improved investor sentiment
Negative/Limited Aspects:
- • Uncertainty regarding profitability improvement (rising costs, increased competition)
- • Short-term stock price volatility
- • Cost burdens due to exchange rate fluctuations
What Should Investors Do?
While this contract may offer short-term positive momentum, a cautious approach is warranted for long-term investment. Investors should closely monitor CHOSUN REFRACTORIES’ profitability, raw material prices, exchange rate fluctuations, and the potential for additional contracts. Crucially, the company’s efforts to overcome its recent performance challenges should be carefully observed.
Key Checkpoints
- • Profitability changes during contract execution
- • Volatility of raw material prices and exchange rates
- • Potential for securing further contracts
- • Efforts to improve financial structure