Latest news with #PoscoHoldings
Korea Herald
17-07-2025
- Business
- Korea Herald
Seoul shares open lower amid US tariff concerns
Seoul shares opened lower Thursday, bucking overnight gains on Wall Street as investors remain concerned over US President Donald Trump's latest tariff threats. The benchmark Korea Composite Stock Price Index fell 12.73 points, or 0.4 percent, to 3,173.65 in the first 15 minutes of trading. Overnight, the Dow Jones Industrial Average rose 0.53 percent to 44,254.78 and the tech-heavy Nasdaq composite climbed 0.25 percent to 20,730.49. Trump recently notified key US trading partners of new tariff rates set to take effect Aug. 1 unless they offer improved terms in ongoing negotiations. In Seoul, large-cap stocks were mixed. Top carmaker Hyundai Motor fell 0.24 percent, and chip giant SK hynix plunged 6.08 percent. Leading steelmaker Posco Holdings dropped 0.16 percent, and leading shipping firm HMM shed 0.6 percent. Among gainers, market bellwether Samsung Electronics rose 0.93 percent, and leading battery maker LG Energy Solution climbed 0.64 percent. National flag carrier Korean Air rose 0.19 percent, and defense firm Hanwha Aerospace gained 1.64 percent. The local currency was trading at 1,389.10 won against the US dollar at 9:15 a.m., down 3.4 won from the previous session. (Yonhap)
Korea Herald
10-07-2025
- Business
- Korea Herald
Posco divests Chinese JV to focus on US, India growth
South Korea's steel giant Posco Group has sold its entire stake in a Chinese steel joint venture as part of a restructuring drive to shed low-profit businesses. According to industry sources on Thursday, the group's holding company, Posco Holdings, signed a deal to transfer its 82.5 percent stake in Zhangjiagang Pohang Stainless Steel to China's steelmaker Tsingshan Holding Group, in a deal valued at around 400 billion won ($291 million). Founded in 1997 to tap into China's stainless steel market, ZPSS is a joint venture owned 58.6 percent by Posco Holdings, 23.8 percent by Posco China and 17.5 percent by China's Jiangsu Shagang Group. The decision comes amid an aggressive overhaul led by Chairman Chang In-hwa, who is redirecting resources to high-growth regions such as the US and India by disposing of underperforming operations. The group secured 662.5 billion won in cash by divesting 45 businesses by the end of last year. ZPSS has an annual capacity of 1.1 million metric tons, more than half of Korea's domestic stainless steel output. In 2006, it grew into the company's first integrated stainless steel production facility outside Korea. However, the business has struggled in recent years amid China's sluggish economic recovery and a persistent supply glut in the steel industry. Last year, its annual sales fell 9 percent on-year to 3.42 trillion won, while it posted a net loss of 129.9 billion won, bringing cumulative losses since 2022 to 377.2 billion won.
Korea Herald
30-06-2025
- Business
- Korea Herald
Posco pursues ‘direct lithium extraction' in North America for 1st time
Posco Holdings announced on Monday plans to test the viability of directly extracting lithium — a key material for electric vehicle batteries — highlighting the significance of establishing a supply chain in North America amid the ongoing pressure of decoupling from China. In partnership with Anson Resources, Australia's natural resource developer, Posco will start the construction of a demonstration plant next year in Green River City, Utah. The facility will evaluate whether Posco's Direct Lithium Extraction technology is feasible for large-scale commercial production. Unlike traditional lithium extraction methods that depend on the natural evaporation of brine in large ponds, DLE is a cost-effective, innovative process designed to selectively extract lithium from low-concentration brine lakes. The project marks the first time a South Korean company has taken steps toward directly producing lithium in North America. In contrast, Posco's domestic rivals, including LG Chem, have primarily secured supply agreements with US-based lithium producers rather than pursuing local production. Earlier Monday, the two companies signed a memorandum of understanding under which Anson Resources will provide the raw materials for lithium and the construction site, where it holds mining rights for lithium brine. While the additional details of the project, including its timeline and investment volume, remain undisclosed, Posco stated: 'By successfully operating the demonstration plant in the US, we aim to commercialize the DLE technology we have developed since 2016. The company intends to leverage this technology for investment and commercialization of undeveloped lithium brine lakes across North America.' According to World Population Review, the US ranked third in the world for lithium deposits in 2023, behind Bolivia and Argentina. This initiative is in line with the company's focus to secure additional lithium resources outside China, which dominates the global lithium hydroxide market, under Posco Holdings CEO Chang In-hwa's '2 Core + New Engine' strategy, referring to focusing on its core steel and battery materials businesses, while also developing new growth engines. Meanwhile, Posco Holdings has secured an annual production capacity of 68,000 metric tons of lithium hydroxide, enough to manufacture batteries for approximately 1.6 million EVs. This includes 25,000 tons from its brine lithium plant in Argentina and 43,000 tons from its ore lithium plant in the Yulchon Industrial Complex in South Jeolla Province.
Korea Herald
30-06-2025
- Business
- Korea Herald
Posco pursues ‘direct lithium production' in North America for 1st time
Posco Holdings announced on Monday plans to test the viability of directly producing lithium — a key material for electric vehicle batteries — highlighting the significance of establishing a supply chain in North America amid the ongoing pressure of decoupling from China. In partnership with Anson Resources, Australia's natural resource developer, Posco will start the construction of a demonstration plant next year in Green River City, Utah. The facility will evaluate whether Posco's Direct Lithium Extraction technology is feasible for large-scale commercial production. Unlike traditional lithium extraction methods that depend on the natural evaporation of brine in large ponds, DLE is a cost-effective, innovative process designed to selectively extract lithium from low-concentration brine lakes. The project marks the first time a South Korean company has taken steps toward directly producing lithium in North America. In contrast, Posco's domestic rivals, including LG Chem, have primarily secured supply agreements with US-based lithium producers rather than pursuing local production. Earlier Monday, the two companies signed a memorandum of understanding under which Anson Resources will provide the raw materials for lithium and the construction site, where it holds mining rights for lithium brine. While the additional details of the project, including its timeline and investment volume, remain undisclosed, Posco stated: 'By successfully operating the demonstration plant in the US, we aim to commercialize the DLE technology we have developed since 2016. The company intends to leverage this technology for investment and commercialization of undeveloped lithium brine lakes across North America.' According to World Population Review, the US ranked third in the world for lithium deposits in 2023, behind Bolivia and Argentina. This initiative is in line with the company's focus to secure additional lithium resources outside China, which dominates the global lithium hydroxide market, under Posco Holdings CEO Chang In-hwa's '2 Core + New Engine' strategy, referring to focusing on its core steel and battery materials businesses, while also developing new growth engines. Meanwhile, Posco Holdings has secured an annual production capacity of 68,000 metric tons of lithium hydroxide, enough to manufacture batteries for approximately 1.6 million EVs. This includes 25,000 tons from its brine lithium plant in Argentina and 43,000 tons from its ore lithium plant in the Yulchon Industrial Complex in South Jeolla Province.
Korea Herald
02-06-2025
- Business
- Korea Herald
Trump's 50% steel tariff deals blow to Korean exporters
New US levy threatens 13% of Korea's steel exports, prompting emergency talks in Seoul In yet another tariff storm last week, US President Donald Trump shocked the world once more with plans to double tariffs on imported steel and aluminum from 25 percent to 50 percent, starting Wednesday. Speaking from a US Steel mill in the Pittsburgh suburbs, Trump described the move as a deal that would 'secure' the American steel industry, one that 'nobody's going to get around.' The tariff escalation is set to deliver another major blow to Korean exporters, the fourth-largest steel supplier to the US. In 2024, exports to the US accounted for 13 percent of Korea's total steel exports. 'At a time when exports to the US are barely holding up following the 25 percent tariff, an additional 25 percent will severely undermine the competitiveness of Korean companies,' said an industry insider. In response, Korean trade officials and steelmakers, including Posco Holdings and Hyundai Steel, gathered Monday for an emergency meeting convened by the Ministry of Trade, Industry and Energy in Seoul to assess the fallout. The agenda centered on evaluating the potential impact of the tariff hike on the industry and formulating future response strategies. While closely monitoring the situation through its networks with US diplomatic offices and the US subsidiaries of Korean companies, the ministry has pledged to implement swift responses to 'minimize' the impact on Korea's steel sector. Some analysts, however, suggest the damage may be limited. According to a Seoul-based market researcher at Daol Investment & Securities, even after the initial 25 percent tariff, US prices for hot-rolled steel remained high. 'The full impact of the new hike depends on how much US steel prices rise in response,' the researcher said. That, in turn, may increase the competitive edge of companies like Hyundai Steel. The company is committed to a $5.8 billion investment plan to build an electric arc furnace-based integrated steel mill in Louisiana by 2029, in partnership with Posco Group. The tariff hike comes amid the US push to bolster its domestic steel industry, which constitutes the backbone of the nation, according to Trump. Trump recently endorsed US Steel's $14 billion acquisition by Japan-based Nippon Steel, a deal he had previously opposed on national security grounds. He said the partnership would create and save more than 100,000 jobs while keeping the American steelmaker under US control, though few details have been disclosed. Although the Court of International Trade ruled last week against Trump's tariffs under the International Emergency Economic Powers Act, potentially hindering his use of punitive levies, it has no bearing on steel and aluminum tariffs. Those instead fall under Section 232 of the Trade Expansion Act, which authorizes tariffs on national security grounds.
