SK Securities raised the target price of POSCO by 20% from 400,000 won to 480,000 won, saying that the steel market will continue to improve and product prices will continue to rise for the time being. The securites firm maintained its investment opinion of 'Buy'.
"POSCO's rise in product prices, which contributed to its positive performance in the first quarter, is continuing in the second quarter," the securities firm said. "With the (last year's) low base, economic improvement and demand recovery still valid, the Chinese government's announcement of the cancellation of export tax refunds for 146 steel products on the 29th of last month played an important role."
The Chinese government is implementing a policy to reduce steel production in its country due to growing global awareness of carbon neutrality. The securities firm predicted that the inventory situation of steel products is lower than the average year, and supply shortages in the U.S. and Europe will lead to a rise in steel products.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
