POSCO Divests Underperforming Steel Units and Sees First Lithium Profit in March
POSCO expects short-term profit headwinds from Middle East geopolitical risks and FX-driven input cost increases, while progressing its steel business overhaul through subsidiary divestments and scaling low-carbon production systems. POSCO International lifted steel exports and gas-sector demand recovery, and its Argentinian lithium subsidiaries recorded their first-ever monthly profit in March.
1. Short-Term Profit Headwinds
POSCO anticipates ongoing profit pressures driven by Middle East geopolitical tensions, which have elevated oil prices and foreign exchange volatility. Rising LNG and raw material costs are expected to constrain margins until external factors stabilize.
2. Strategic Steel Business Overhaul
The company is divesting underperforming steel subsidiaries while accelerating the rollout of low-carbon production systems across its core operations. This restructuring aims to improve operational efficiency and support long-term sustainability targets.
3. International Exports and Energy Sector Recovery
POSCO International recorded higher steel export volumes alongside a rebound in gas and energy sector demand, contributing to improved segment profits. Efforts to diversify LNG supply routes and secure dollar receipts are underway to mitigate cost headwinds.
4. Argentinian Lithium Unit Turnaround
POSCO’s lithium production subsidiaries in Argentina achieved their first-ever monthly profit in March, driven by increased utilization rates and competitive supply contracts. Phase 2 of the brine project is expected to further bolster profitability from October.