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Key Takeaways POSCO Holdings is investing KRW 1.1T to secure premium lithium resources in Australia and Argentina. The firm will obtain a stable lithium concentrate supply from major Australian mines via its new stake deal. POSCO Holdings also bought Lithium South's Argentine unit to expand its brine-based lithium portfolio. POSCO Holdings, Inc. (PKX) recently announced a total investment of KRW 1.1 trillion to secure premium lithium resources in Australia and Argentina, strengthening its raw-material suppl ...

Core Viewpoint - Australia's Mineral Resources will divest a 30% stake in its operational lithium business to South Korea's POSCO Holdings for $765 million, establishing a new joint venture [1] Company Summary - The transaction involves a 30% stake in the lithium business, indicating a strategic partnership with POSCO Holdings [1] - The valuation of the stake sold is $765 million, highlighting the significant financial implications for both companies involved [1] Industry Summary - The deal reflects ongoing trends in the lithium market, where partnerships and joint ventures are becoming increasingly common as companies seek to capitalize on the growing demand for lithium in electric vehicle batteries and renewable energy storage [1]

News Summary Core Viewpoint - The stainless steel market is experiencing a mixed situation with production adjustments and inventory changes, influenced by both domestic and international factors [1][2][3]. Group 1: Production and Inventory - In November, stainless steel production was 3.3752 million tons, a decrease of 2.06% month-on-month but an increase of 1.71% year-on-year [1]. - As of October 2025, the inventory of steel products in key steel enterprises was 14.63 million tons, a decrease of 1.95 million tons (11.8%) from the previous period, but an increase of 2.26 million tons (18.3%) from the beginning of the year [1]. Group 2: Market Dynamics - The shutdown of POSCO's stainless steel plant in South Korea may lead to supply chain tensions, although domestic stainless steel inventory has slightly increased and terminal demand remains weak [2]. - The raw material costs are expected to decrease due to the Indonesian government's policies affecting nickel resource supply costs, while the production profits for steel mills are recovering [3]. Group 3: Demand and Pricing - The demand from downstream sectors is not strong, leading to a general increase in stainless steel social inventory, with market purchasing intentions remaining low [3]. - Technical analysis indicates a downward trend in prices with increased divergence between long and short positions, suggesting a focus on support levels around 12,400 [3].

Core Insights - Cleveland-Cliffs Inc. has established a strategic partnership with POSCO, Korea's largest steelmaker and the world's third largest steelmaker outside of China [1] - The Memorandum of Understanding (MoU) between Cleveland-Cliffs and POSCO was executed on September 17, 2025 [1] - The recent completion of a new trade agreement between the U.S. and Korea is expected to enhance cooperation between the industrial sectors of both nations [1]

Financial Data and Key Metrics Changes - POSCO Holdings recorded consolidated revenue of KRW 17.3 trillion and operating profit of KRW 640 billion, showing improvement in operating profit for three consecutive quarters despite losses at POSCO E&C [1][3] - The operating profit margin for the quarter was 6.6%, driven by increased sales volume and proactive cost-cutting efforts [1][8] - Operating profit increased from KRW 322 billion in Q4 of the previous year to KRW 585 billion in Q3 of this year, despite a 1.7% drop in revenue due to declining sales prices [7][8] Business Line Data and Key Metrics Changes - In the steel sector, production volume increased by 4.9%, but sales prices dropped by approximately KRW 25,000 per ton, leading to a decline in revenue [8] - In rechargeable battery materials, losses narrowed significantly quarter-over-quarter due to increased cathode sales volume and a rebound in lithium prices [2][10] - POSCO E&C faced a one-time cost of KRW 288.1 billion due to the Sinansan incident, with an additional KRW 230 billion expected in Q4 [10][11] Market Data and Key Metrics Changes - The domestic steel market is normalizing, but imports have flooded the market prior to the anti-dumping ruling, affecting sales prices [8][9] - Overseas steel profits are expected to decline moderately due to slow performance in Mexico and other rolling mills, while profits in India shrank due to major repairs [9] - The lithium market is anticipated to see a price increase, with expectations of reaching $10-$15 per ton next year [30][51] Company Strategy and Development Direction - POSCO Group is focused on creating a safe workplace through comprehensive safety management innovations and plans to establish a group-wide safety master plan [3][6] - The company aims to ramp up new plants and improve process efficiency in lithium operations while ensuring disciplined execution to avoid additional costs [2][29] - Future investments will prioritize growth markets in the U.S. and India, with a focus on environmental investments and potential M&A opportunities [28][29] Management Comments on Operating Environment and Future Outlook - Management acknowledged the complexities in the external environment and expressed optimism for a recovery in steel profits in 2026 compared to the current year [9][11] - The company plans to address uncertainties related to the EU's Carbon Border Adjustment Mechanism (CBAM) and is committed to reducing its carbon footprint [20][21] - Management expects to return to normal levels of profitability in POSCO E&C next year after accounting for one-off losses [11] Other Important Information - POSCO Group has completed 63 portfolio management projects, generating KRW 1.4 trillion in cash [7] - The company has launched a safety task force and is implementing new safety technologies and practices to prevent future incidents [5][6] Q&A Session Summary Question: Steel market outlook for Q4 and guidance for next year - Management indicated that the impact of anti-dumping measures would be difficult to assess immediately due to prior imports and expected seasonal demand fluctuations [18][19] Question: Response to carbon-related costs and EU regulations - Management is developing guidelines to counter the CBAM initiative and is focused on reducing carbon emissions while engaging with the EU [20][21] Question: Update on Alaska LNG project and its impact on sales volume - The project is under review, and if realized, it could supply about 300,000 tons of steel from 2026 to 2028 [23] Question: Mid to long-term steel strategies and investment plans - Management confirmed plans to increase overseas capacity and shut down non-competitive domestic facilities while exploring new growth areas [27][28] Question: Update on lithium demand and production - Lithium demand is expected to rise significantly, with projections of 1.3 million tons of production next year, driven by EVs and other applications [45][51]

Financial Data and Key Metrics Changes - POSCO Holdings recorded consolidated revenue of 17.3 trillion and operating profit of 640 billion, showing improvement in operating profit for three consecutive quarters despite losses at POSCO E&C [1][2] - The operating profit margin for the quarter was 6.6%, driven by increased sales volume and proactive cost-cutting efforts [1][8] - Operating profit for POSCO improved from 322 billion in Q4 of last year to 585 billion in Q3 of this year, despite a 1.7% drop in revenue due to declining sales prices [7][8] Business Line Data and Key Metrics Changes - In the steel sector, production volume increased by 4.9%, but the average selling price dropped, leading to a decrease in revenue [8] - In rechargeable battery materials, losses narrowed sharply quarter-over-quarter due to increased cathode sales volume and a price rebound in lithium operations [2][10] - POSCO E&C faced significant one-time costs of 288.1 billion due to the Shenzhen incident, with an additional 230 billion expected in Q4 [10][64] Market Data and Key Metrics Changes - The domestic steel market demand is slowing, with imports flooding the market prior to the AD ruling, impacting sales prices [8][20] - Overseas steel profits are expected to decline moderately due to poor performance in Mexico and India, while steady performance is anticipated in Indonesia and Vietnam [9][10] - The lithium market is projected to see increased demand, with expectations of 14 million EVs next year, leading to a potential increase in lithium prices [51][52] Company Strategy and Development Direction - POSCO Group is focused on creating a safe workplace through comprehensive safety management innovations and plans to establish a safety master plan [3][6] - The company aims to ramp up new plants and improve process efficiency in lithium operations while ensuring disciplined execution to avoid additional costs [2][31] - Future investments will prioritize environmental projects and overseas capacity additions, particularly in high-growth markets like the U.S. and India [30][31] Management Comments on Operating Environment and Future Outlook - Management acknowledged the complexities of external uncertainties affecting the operating environment and expressed optimism for a recovery in steel profits in 2026 [1][9] - The company is preparing for the implementation of the EU's Carbon Border Adjustment Mechanism and is actively developing strategies to mitigate its impact [21][22] - Management expects to return to normal profitability levels in POSCO E&C by next year after accounting for one-time losses [10][64] Other Important Information - POSCO Group has restructured seven projects, generating 400 billion in cash, and completed 63 projects since early 2024, generating 1.4 trillion in cash [7] - The company is committed to enhancing safety measures and has launched a task force to improve workplace safety [4][5] Q&A Session Summary Question: Steel market outlook for Q4 and anti-dumping effects - Management indicated that the impact of anti-dumping measures would be difficult to assess immediately, but they expect some positive effects from the real estate market in late Q4 [19][20] Question: Response to carbon-related costs and EU regulations - Management acknowledged the potential increase in costs due to the EU's Carbon Border Adjustment Mechanism and emphasized ongoing communication with the EU to address uncertainties [21][22] Question: Update on Alaska LNG project and its impact - The project is under review, and if realized, it could supply about 300,000 tons of steel, with operations expected between 2026 and 2028 [24] Question: Mid to long-term steel strategies - Management confirmed plans to increase overseas capacity and shut down non-competitive domestic facilities while focusing on new growth areas [28][30] Question: Update on lithium operations and market demand - Management reported that ramp-up for lithium operations is expected to be completed by early next year, with anticipated increases in lithium prices and demand [55][59]

Financial Data and Key Metrics Changes - POSCO Holdings reported consolidated revenue of 17.3 trillion KRW and operating profit of 640 billion KRW for Q3 2025, showing improvement in operating profit for three consecutive quarters [1] - The operating profit margin for the quarter was recorded at 6.6%, driven by increased sales volume and cost-cutting efforts, despite a 1.7% drop in revenue compared to the previous quarter [1][8] - Operating profit for POSCO specifically was 585 billion KRW in Q3, reflecting a continuous recovery pattern from previous quarters [6] Business Line Data and Key Metrics Changes - In the steel sector, despite a decline in sales prices due to market saturation and increased imports, production volume increased by 4.9% [7][8] - In rechargeable battery materials, losses narrowed significantly quarter-over-quarter, with cathode sales volume nearly doubling due to the impending IRA benefit sunset [2][10] - POSCO E&C faced significant losses due to the Shenzhen line incident, with a one-time cost of 288.1 billion KRW recognized in Q3, and an additional 230 billion KRW expected in Q4 [10][49] Market Data and Key Metrics Changes - The domestic steel market in Korea is normalizing, but the company anticipates challenges due to reduced EU duty-free quotas and increased tariffs on steel products [1][9] - Overseas steel profits are expected to decline moderately, particularly in Mexico and India, while steady performance is anticipated in Indonesia and Vietnam [9][10] Company Strategy and Development Direction - The company is focused on ramping up new lithium plants and improving process efficiency, with a commitment to disciplined execution to avoid additional costs [2] - POSCO Group is implementing a comprehensive safety management plan to prevent future incidents and improve workplace safety [4][5] - The company is restructuring its portfolio, having completed 63 projects generating 1.4 trillion KRW in cash, and is prioritizing investments in high-growth markets such as the U.S. and India [6][25] Management Comments on Operating Environment and Future Outlook - Management expressed that while the current operating environment is complex, they expect to return to normal profitability levels in 2026 after accounting for one-off losses [3][10] - The outlook for the steel market in 2026 is positive, with anticipated overall profit increases compared to the current year [9] - Management highlighted the importance of adapting to changes in carbon-related costs and trade regulations, particularly the EU's Carbon Border Adjustment Mechanism [13][19] Other Important Information - The company is actively engaging in negotiations to secure more quotas in response to EU tariff increases and is adjusting its sales strategy to mitigate impacts from reduced quotas [47] - The company is also exploring potential M&A opportunities in sectors aligned with its long-term growth strategy [26] Q&A Session Summary Question: Steel market outlook for Q4 and impact of anti-dumping measures - Management indicated that the impact of anti-dumping measures would be difficult to assess immediately due to prior imports and expected seasonal demand fluctuations [16][17] Question: Response to EU Carbon Border Adjustment Mechanism - Management noted that while initial impacts may be minimal, costs are expected to rise in subsequent years, and they are developing guidelines to address these changes [18][19] Question: Investment plans and restructuring strategies - Management confirmed ongoing evaluations of investment opportunities in high-growth markets and emphasized the importance of maintaining competitiveness through facility upgrades and potential closures of underperforming assets [24][25] Question: Update on lithium operations and market demand - Management provided updates on the ramp-up of lithium operations, indicating that full operations are expected by early next year, with anticipated increases in demand driven by EVs [41][44]

Financial Data and Key Metrics Changes - POSCO Holdings recorded consolidated revenue of KRW 17.3 trillion and operating profit of KRW 640 billion for Q3 2025, showing improvement in operating profit for three consecutive quarters [1][2] - The operating profit margin for the quarter was 6.6%, with a recovery in operating profit despite a 1.7% drop in revenue due to declining sales prices [2][11] - The average mill margin remained comparable to the previous quarter, supported by proactive cost-cutting efforts [1][12] Business Line Data and Key Metrics Changes - In the steel segment, operating profit increased to KRW 585 billion in Q3 2025, despite a 4.9% increase in production volume and a decline in sales prices [10][11] - Rechargeable Battery Materials saw a significant narrowing of losses quarter-over-quarter, with cathode sales volume increasing ahead of the IRA benefit sunset [2][15] - POSCO E and C faced substantial losses due to the Shinansan line accident, with a one-time cost of KRW 288.1 billion recognized in Q3 [17] Market Data and Key Metrics Changes - The domestic steel market in Korea is normalizing, although demand continues to slow, and imports have flooded the market prior to the AD ruling [2][11] - The proportion of exports in Q3 rose to approximately 49.3%, indicating a shift in sales strategy [12] - Overseas steel profits are expected to experience a moderate decline, particularly in Mexico and India, while performance in Indonesia and Vietnam remains steady [14] Company Strategy and Development Direction - The company is focused on creating a safe workplace through group-wide safety management innovations following recent safety incidents [4][5] - POSCO Group plans to return to normal profitability levels in 2026 after accounting for one-off losses from the Shinansan incident [4][17] - Future investments will prioritize environmental projects and overseas capacity additions, particularly in high-growth markets like the U.S. and India [41][42] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the steel market in 2026, anticipating overall profit increases compared to the current year [13] - The company is preparing for the implementation of the EU's CBAM and is developing countermeasures to mitigate potential impacts [28][29] - Management highlighted the importance of adapting to changing market conditions and maintaining competitiveness through strategic investments [40][41] Other Important Information - POSCO Holdings has completed 63 portfolio management projects generating KRW 1.4 trillion in cash since early 2024 [9] - The company is actively restructuring its operations and focusing on safety improvements following recent incidents [5][8] Q&A Session Summary Question: What is the outlook for the steel market in Q4 and next year? - Management indicated that the impact of anti-dumping measures will be difficult to assess immediately, but they expect some positive effects in the latter part of the year [24][25] Question: How will the company respond to carbon-related costs and regulations? - The company plans to develop guidelines to address the EU's CBAM and will continue efforts to reduce carbon footprints [28][29] Question: What are the investment plans following recent portfolio management? - Management stated that generated cash will be used for business growth and managing non-leverage assets, with ongoing reviews for potential acquisitions [66][67] Question: What is the current situation regarding lithium demand and pricing? - Lithium demand is expected to increase significantly, with projections for EVs and ESS driving growth [68][75] Question: How will the company handle the impact of the EU's duty-free quota reduction? - The company plans to negotiate individually with countries under FTA agreements and adjust sales strategies to mitigate impacts [77][78]

Financial Performance - POSCO HOLDINGS' Q3 2025 revenue was KRW 17261 billion, a decrease of KRW 295 billion compared to Q3 2024 [9] - The operating profit margin for Q3 2025 was 37%, an increase of 02% compared to Q2 2025 [9] - Net debt increased to KRW 11753 billion in Q3 2025, up from KRW 10924 billion in Q2 2025 [11] - Cumulative CAPEX administered by Q3 2025 was KRW 48 trillion on a consolidated basis and KRW 10 trillion separately [12] Segment Performance - The Steel sector's revenue in Q3 2025 was KRW 14730 billion, with an operating profit of KRW 656 billion [13] - POSCO's separate revenue in Q3 2025 was KRW 8797 billion, with an operating profit of KRW 585 billion [13] - The Rechargeable Battery Materials (RBM) sector, including POSCO FUTURE M, had a revenue of KRW 1000 billion but an operating loss of KRW 42 billion [13] - POSCO INTERNATIONAL's revenue in Q3 2025 was KRW 8248 billion, with an operating profit of KRW 316 billion [13] - POSCO E&C experienced a revenue of KRW 1408 billion and an operating loss of KRW 195 billion [13] Safety Initiatives - The company is implementing a "Safe Workplace Initiative" with the goal of setting the standard for industrial safety practices in Korea [14] - A Corporate Safety TF was established to plan and drive an integrated Group-wide Safety Master Plan [16] - The company is expanding worker engagement, ending the practice of outsourcing danger, and expanding AI safety technology [15] Portfolio Management - The portfolio management progress rate between Q3 2024 and Q3 2025 is 50%, with 63 projects completed and cash generation of KRW 14 trillion [22]