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]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive has a presence in key finance and investing hubs with offices in London, New York, Toronto, Vancouver, Sydney, and Perth [2][3] Group 2 - The company utilizes technology to enhance workflows and has a forward-looking approach to technology adoption [4] - Proactive employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - Proactive is a financial news and online broadcast organization that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The company specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's editorial and broadcast operations are managed by a seasoned team, ensuring quality control and content production across multiple global locations [1][2] Company Operations - Proactive operates with a team of experienced news journalists across key finance and investing hubs, including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - The organization produces approximately 50,000 pieces of real-time news, feature articles, and filmed interviews annually [1] - Proactive employs both human content creators and technology, including automation and generative AI, to enhance workflows while ensuring all content is edited and authored by humans [4][5] Market Focus - The company delivers news and unique insights across various sectors, including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3]

Core Insights - The agreement enhances collaboration between the U.S. and South Korea, focusing on sustainable supply chains for defense, clean energy, and advanced technologies [1] - A joint feedstock taskforce has been established to source both recycled and ore-based rare earth feedstock [1] Company Developments - American Resources Corporation's portfolio company, ReElement Technologies, is recognized as a leading innovator in rare earth element and critical mineral refining [1] - ReElement has signed a long-term offtake partnership with POSCO International America Corp, a global leader in steel and advanced industrial solutions [1] Strategic Collaboration - The partnership aims to integrate ReElement's advanced chromatographic separation and purification platform with POSCO's extensive supply chain relationships [1] - POSCO's expertise in materials science and large-scale industrial deployment will be leveraged to enhance the partnership's effectiveness [1]