Corporate Logo(source: hyundai-steel.com)
Hana Securities announced on July 4 that it has raised its target price for Hyundai Steel (004020) to 50,000 won, citing expectations of earnings improvement beginning in the third quarter, driven by rising domestic rebar distribution prices.
Analyst Park Sung-bong noted, “From the third quarter onward, strengthened restrictions on Chinese steel imports, a decline in the won-dollar exchange rate, and improved profitability in long products are expected to support earnings recovery.” He added, “There is a high likelihood that the Chinese government will announce structural reform policies for the steel industry by year-end, and if realized, such moves could serve as upward momentum for the stock.”
Park estimated that second-quarter operating profit would reach 81 billion won, falling short of the market consensus of 111 billion won.
However, he projected third-quarter operating profit to rise sharply by 223.1% year-on-year to 166.5 billion won, driven by an anticipated widening spread between flat and long steel products.
According to Park, Hyundai Steel began an indefinite suspension of operations at its Pohang Plant 2 on June 7 to help normalize the long products market. In addition, the Dangjin Plant is scheduled to undergo major maintenance through mid-July. The Incheon rebar plant, which had halted operations for a month in April, will also cease operations again for one month starting July 12. Other domestic steelmakers are actively participating in production cuts to support market stabilization.
As a result, domestic rebar distribution prices, which bottomed out in mid-June, have started to rebound. This recovery is expected to expand Hyundai Steel’s long product spread and support improved profitability in the third quarter.
*[KOSPI] Hyundai Steel(004020) is a subsidiary of the Hyundai Motor Group and is the largest electric arc furnace steelmaker in Korea. It consists of blast furnaces, electric arc furnaces, and mobility materials business units. The market capitalization is 4.737 trillion won (as of July 3, 2025, closing price).
Corporate Logo(source: hyundai-steel.com)
Hana Securities announced on July 4 that it has raised its target price for Hyundai Steel (004020) to 50,000 won, citing expectations of earnings improvement beginning in the third quarter, driven by rising domestic rebar distribution prices.
Analyst Park Sung-bong noted, “From the third quarter onward, strengthened restrictions on Chinese steel imports, a decline in the won-dollar exchange rate, and improved profitability in long products are expected to support earnings recovery.” He added, “There is a high likelihood that the Chinese government will announce structural reform policies for the steel industry by year-end, and if realized, such moves could serve as upward momentum for the stock.”
Park estimated that second-quarter operating profit would reach 81 billion won, falling short of the market consensus of 111 billion won.
However, he projected third-quarter operating profit to rise sharply by 223.1% year-on-year to 166.5 billion won, driven by an anticipated widening spread between flat and long steel products.
According to Park, Hyundai Steel began an indefinite suspension of operations at its Pohang Plant 2 on June 7 to help normalize the long products market. In addition, the Dangjin Plant is scheduled to undergo major maintenance through mid-July. The Incheon rebar plant, which had halted operations for a month in April, will also cease operations again for one month starting July 12. Other domestic steelmakers are actively participating in production cuts to support market stabilization.
As a result, domestic rebar distribution prices, which bottomed out in mid-June, have started to rebound. This recovery is expected to expand Hyundai Steel’s long product spread and support improved profitability in the third quarter.
*[KOSPI] Hyundai Steel(004020) is a subsidiary of the Hyundai Motor Group and is the largest electric arc furnace steelmaker in Korea. It consists of blast furnaces, electric arc furnaces, and mobility materials business units. The market capitalization is 4.737 trillion won (as of July 3, 2025, closing price).