Summary
- POSCO Holdings, Moonbae Steel and Daeho Special Steel were among steel stocks that hit the daily limit on news of Iran’s export ban and China’s output cuts.
- As China moves to curb steel production through 2030, the export ban is raising expectations for higher product prices.
- Steelmakers’ price hikes and lower PBRs have left steel shares looking undervalued, helping draw in buyers.
Forecast Trend Report by Period
POSCO Holdings hits 52-week high
Moonbae Steel closes at daily limit
Steel stocks in South Korea surged across the board as buying accelerated on news of Iran’s export ban and continued production cuts in China.
According to the Korea Exchange on April 28, POSCO Holdings, the country’s leading steel stock, closed 11.74% higher at 466,500 won. It also touched a fresh 52-week intraday high of 482,000 won. Moonbae Steel jumped 30%, while Daeho Special Steel rose 29.95%. POSCO SteeLeon gained 29.87%, AJU Steel climbed 29.93%, Nexteel advanced 29.89% and Kumkang Steel added 29.86%, with all of them hitting the daily price limit.
The rally appeared to be driven by news that Iran will ban exports of steel slabs and steel plates through May 30, boosting investor sentiment. According to China’s National Bureau of Statistics, the country’s crude steel output is projected at 961 million tons in 2025, down 4.4% from a year earlier. China plans to continue output cuts this year to address oversupply. As the world’s biggest producer moves to regulate steel production through 2030, the export ban is adding to expectations of higher product prices.
Rising domestic steel prices also supported the gains. According to the steel industry, POSCO notified customers that it will raise distribution prices for general carbon steel products, including hot-rolled and cold-rolled steel sheets, by 50,000 won per ton in the second quarter. Hyundai Steel is also raising prices for major products. That has fueled expectations for a recovery in earnings after a prolonged industry downturn. “Major steelmakers have recently been raising prices,” Park Sung-bong, an analyst at Hana Securities, said. Lower price-to-book ratios for steel shares are also attracting buyers, he added.
According to the Korea Exchange, the KRX Steel Index traded at a price-to-book ratio of just 0.65 times as of April 27. That was the lowest among the exchange’s 34 sector indexes. PBR compares a company’s stock price with its book value, and a reading below 1 is generally viewed as undervaluation.
Cho Ara, Hankyung.com reporter rrang123@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
