Hyundai Steel extended its gains for a fifth straight session in early trading, supported by a rebound in steel prices and expectations of higher product prices.
As of 10:25 a.m. on April 29, Hyundai Steel shares were trading at 45,950 won, up 1,850 won, or 4.20%, from the previous session. The stock has risen for five consecutive sessions since April 23, gaining more than 10% over that period.
The advance was attributed to growing expectations for an industry upturn as China, the world’s largest steel producer, has recently reduced output. According to the World Steel Association, China’s crude steel production last month totaled 87 million tons, down 6.3% from 92.8 million tons a year earlier. China has signaled output cuts, citing carbon-emissions reductions and industrial restructuring. Market participants say that if China-driven supply tightening continues, steel prices could firm further and lift earnings expectations for South Korean steelmakers.
Global steel price trends have also been supportive, analysts said, as easing geopolitical risks in the Middle East, expectations for steadier interest rates and a weaker dollar have reduced some pressure on the sector.
Brokerages are also focusing on the possibility of near-term earnings improvement. Kim Yun-sang, an analyst at iM Securities, said inflation and high interest rates remain a burden, but recent steel price moves and stabilizing macroeconomic variables are a positive shift. He added that while the price rise is partly tied to supply disruptions, higher prices themselves are supportive for earnings.
* This article has been translated by AI.
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