[Concall] POSCO "Steel prices in the first half of next year to show a boring pattern stabilizing at the bottom without sharp fluctuations"

Q3 Earnings Conference Call

[Asia Economy Reporter Choi Seoyoon] POSCO stated in its Q3 2022 earnings conference call on the 24th regarding the domestic steel market outlook for next year, "In 2023, tightening policies centered on the United States are expected to continue, inevitably affecting steel demand industries," adding, "Global steel demand is expected to grow by about 1%, while Korea is expected to remain at the same level as this year."

POSCO said, "In the automotive industry, global car production is expected to increase by 5.3% from this year to about 86 million units," and evaluated, "In the shipbuilding industry, despite strong orders over the past two years, the key to a rebound in shipbuilding demand next year lies in how to resolve supply chain recovery and labor shortages that collapsed during the downturn."

It added, "On the supply side, steelmakers, including those in China, are focusing on qualitative growth such as carbon-neutral technology development rather than quantitative growth due to the spread of carbon neutrality issues, so production volume increases are expected to be limited."

Furthermore, it stated, "Next year, tightening policies and other economic policies and demand decline will continue, and supply expansion will also be limited, so a dull pattern of bottoming out without sharp price fluctuations is expected to unfold in the first half," and "We expect demand to improve starting in the second half as tightening eases."

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