April 23, 2024

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[THE INVESTOR] Hyundai Steel is expected to raise the price of steel plates for automobiles by 80,000 won (US$67.92) per a ton after a negotiation with Hyundai and Kia Motors in February, said Korea Investment and Securities on Jan. 13.

The securities firm maintained a “buy” recommendation and 82,000-won target price. 

Price is the key variable for the steelmaker’s stock price, said analyst Choi Mun-seon, adding that it will be difficult to further postpone the price hike.”

Hyundai Steel failed to raise the price of automobile steel plates, its flagship product, last year that led to a sluggish stock price. However, its fourth-quarter operating profit would reach 376 billion won as long products enjoyed an unprecedented boom offsetting the commodity price hike and it actively raised the prices of hot rolled steel sheets and thick plates, explained the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)