Hyundai Motor Securities projected on September 21 that Hyundai Steel's performance will improve and be reflected in its stock price once the Louisiana steel mill (HPLS) is completed and begins normal operations. As a result, the firm raised its target price from 36,500 won to 46,700 won while maintaining a 'buy' rating.
Park Hyun-wook, a researcher at Hyundai Motor Securities, stated, "The groundbreaking ceremony for HPLS was held in September, and it is expected to be completed in the first half of 2029. The U.S. has the highest steel prices globally due to a 50% import tariff on steel and increased demand for data centers last year."
He added, "For hot-rolled steel, prices are $1,300 per ton in the U.S., $950 in Europe, $680 in South Korea, and $500 in China. HPLS is estimated to generate 5.5 trillion won in revenue, 1.2 trillion won in EBITDA, and 610 billion won in net profit, with Hyundai Steel's 50% stake expected to contribute 300 billion won annually through equity method gains."
Regarding the Chinese steel market, Park noted, "While production cuts are being maintained, steel exports have turned positive since June compared to the same period last year, with an 8% increase in August (cumulative -3%). This is likely due to weak demand in the real estate sector and an expanded price gap with offshore prices, which has renewed incentives for exports."
He also remarked, "Since the 2000s, global steel prices have been significantly influenced by Chinese steel prices. However, since 2020, countries have raised import barriers, leading to differentiated prices and performances by region, and future stock prices are also expected to vary by country."
* This article has been translated by AI.
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