[Special Stock] PJ Metal Rises on Expectations for New Business in Essential Intermediate Materials Used in Aluminum Extrusion

[Asia Economy Reporter Yoo Hyun-seok] PJ Metal is showing strong performance. Aluminum-related stocks such as Daeho AL and Joil Aluminum have surged simultaneously, showing a concurrent strong trend.

As of 1:27 PM on the 11th, PJ Metal was trading at 4,400 KRW, up 22.56% (810 KRW) compared to the previous trading day.

PJ Metal produces aluminum deoxidizers and billets, which are among non-ferrous metal alloy materials. These are closely related to the steel, automotive, construction, and home appliance industries. Steelmaking aluminum deoxidizers are auxiliary materials added during the steelmaking process to remove excess oxygen from molten iron, refine the grain structure, and produce steel with excellent workability. Aluminum deoxidizers are produced by recycling primary materials such as aluminum cans, aluminum pucks (compressed chips), and aluminum plates. The deoxidizers are supplied to POSCO Gwangyang Steelworks.

Aluminum billets are essential intermediate materials used in aluminum extrusion. Currently, PJ Metal is accelerating its business efforts to add production of the 3000 and 7000 series to its existing aluminum 6000 alloy series (6063, 6061, 6N01) production lines.

Last year, the global economy was depressed due to the COVID-19 pandemic. PJ Metal explained that the non-ferrous metal alloy market is recovering to pre-COVID-19 demand levels, driven by explosive demand from China, led by the steel and automotive industries. It is expected that the outlook for key raw materials will be bright as various infrastructures such as eco-friendly cars, electric vehicles, and antibacterial steel plates are being established under the global eco-friendly trend.

Aluminum deoxidizers, which are directly affected by steel market conditions, are gradually increasing supply due to the early recovery of steel demand in China, which escaped the COVID-19 impact relatively early, and the production and price recovery of domestic steelmakers along with the US and Europe since August. In response to increased overseas demand, PJ Metal is diversifying deoxidizer sales beyond the domestic market and increasing sales volume with various specifications (spec.). PJ Metal pursues performance improvement through diversifying raw material suppliers, enhancing production capacity, efficient use of manufacturing expenses, and flexible response to the international raw material market.

Aluminum billets are expected to gradually recover due to increased construction orders from domestic and international economic stimulus measures and fiscal expansion, SOC budget increases, and the Korean New Deal. It is also forecasted to continue its upward trend due to increased demand for automotive parts.

This content was produced with the assistance of AI translation services.