Hong Kong, November 05, 2013 -- Moody's Investors Service says that China's push to reduce steel capacity is credit positive for Asian steelmakers, although the timing and scope of the capacity cuts are uncertain.
"The oversupply of steel in China is the dominant driver of the weak industry fundamentals in Asia's steel industry. The government's initiative will therefore be credit positive for most large steelmakers in the region. However, it is unclear as to the timing and scale of the capacity cuts," says Jiming Zou, a Moody's Assistant Vice President and Analyst.
Moody's conclusions are contained in its just-released report titled "China's Push to Reduce Steel Capacity Is Credit Positive for Asian Steelmakers."
Moody's report says large Chinese producers such as Baosteel Group Corp (A3 negative) will benefit the most, because while other inefficient mills are required to close, Baosteel, for instance, can increase its market share as it has received government approval to build new steel facilities in southern China. The company will also see its profits rise, as it raises capacity utilization.
Other steelmakers in the region such as POSCO (Baa1 negative) and Nippon Steel & Sumitomo Metal Corp (A3 negative) should also benefit from China's capacity reduction, but to a lesser degree.
NEW DELHI (Yonhap News) ― South Korean steel giant POSCO is expected to see its long-delayed project to build an integrated plant in India move speedily forward in the wake of President Park Geun-hye?s state visit to the country, the presidential office said Thursday.
In 2005, POSCO signed a memorandum of understanding with the eastern Indian state of Odisha to construct a $12 billion steel plant with an annual production capacity of up to 12 million tons.
But the project has been stalled due to a series of regulatory and other delays.
In the run-up to Park?s state visit to New Delhi, however, India?s government has granted the project an environmental permit, allowing POSCO to secure 2,700 acres of land for the project. The state government has also made a commitment with regard to iron ore exploration rights, the office said.
India?s central government is also expected to express its commitment to provide the project with active administrative support, the office said, adding that if the project goes smoothly forward, steel production could begin as early as eight years later in 2022.
The project will mark the biggest-ever foreign direct investment in India. It will directly hire 18,000 people and help create a total of 870,000 jobs, and annual sales of the plant are expected to amount to $3 billion, the office said.
POSCO?s board of directors said they nominated Kwon to combine technology and marketing to enhance the company?s core competence. Kwon will also be pushed to develop new technologies that can be later on nurtured into next-generation growth engines.
?I will study these issues to share with you in the near future,? Kwon told reporters.
Meanwhile, market watchers are hoping the new tech-savvy chief will bring vitality to POSCO stocks that have lost up to 60 percent of their value compared to their peak several years ago. POSCO stocks rose to 316,000 won a share on Friday morning, up 1.44 percent from the previous day. They ultimately closed nearly unchanged at 311,500 won.
Hong Kong, January 29, 2014 -- Moody's Investors Service says that POSCO's moderate operating results for 2013 were credit negative, but will not impact the steel-maker's Baa2 rating and stable outlook.
"Although POSCO's adjusted debt/EBITDA deteriorated to about 4.7x in 2013 from 4.2x in 2012 because of decreased earnings, we expect its financial leverage to improve to about 4x in 2014, a level consistent with its Baa2 rating," says Chris Park, a Moody's Vice President and Senior Credit Officer.
According to POSCO, its consolidated and unadjusted operating income fell 18% year-on-year to KRW3.0 trillion in 2013 due to moderate steel demand in Korea and China, and the strong won. Its reported debt is also estimated to have grown by 5% year-on-year owing to sizeable investments, which were partly mitigated by its deleveraging measures. These factors, which resulted in its increased financial leverage, have been incorporated in the rating downgrade of POSCO to Baa2 from Baa1 in November 2013.
The persistent weakness in the regional steel industry means that any meaningful recovery in POSCO's core steel margins -- EBITDA per ton -- is unlikely in 2014.
Nonetheless, Moody's expects POSCO's earnings to grow gradually over the next two years, driven by its large expansion in steel capacity, completed in 2013, and by its non-steel businesses. This should allow the company to improve its financial leverage, although its planned sizeable investments (KRW6.5 trillion in 2014) should necessitate an increase in debt.
Moody's also expects POSCO to continue pursuing measures to lower its debt level.
The principal methodology used in this rating was Moody's Rating Methodology for Global Steel Industry, published in October 2012. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
POSCO is one of the world's largest steel producers, with a dominant market position in Korea in terms of sales. It manufactures a broad range of steel products, including hot-rolled products, plates, wire rods, cold-rolled products, silicon steel sheets and stainless steel products.
: Sieht derzeit nicht gut für den sektor aus...
Betonstahlpreis Shanghai (Yuan Pro Tonne)
In Europa und den USA gibt es für die Stahlpreise kein Entrinnen aus einer sich seit Wochen hinziehenden Seitwärtsbewegung. Noch sehr viel trister ist die Lage in China. Die chinesischen Stahlproduzenten wären über eine Stagnation heilfroh. Stattdessen bricht die Stahlpreisentwicklung im Reich der Mitte massiv ein.
An der Londoner Metallbörse gehandelter Rohstahl notiert seit Ende Januar ununterbrochen bei 355 Dollar je Tonne. Zuvor war der Kontrakt innerhalb von drei Monaten von 215 Dollar auf 359 Dollar geklettert . Ähnlich ist die Preisentwicklung von warm gewalzten US-Stahl, der seit Anfang Februar bei 655 Dollar dümpelt, nachdem er zuvor einen Anstieg von 630 auf 675 Dollar vollbracht hatte.
In Shanghai gehandeltes Betonstahl brach derweil ein. Der meistgehandelte Kontrakt für den Liefermonat Mai sank auf 3.386 Yuan (406 Euro). Es scheint nur eine Frage der Zeit zu sein, bis das Allzeittief vom 10. Februar bei 3.380 Yuan bricht.
"Ich glaube nicht daran, dass sich der Stahlmarkt in nächster Zeit erholen kann, weil das makroökonomische Umfeld nicht gut aussieht", zitiert die Nachrichtenagentur Reuters einen Eisenerzhändler aus der nordostchinesischen Hafenstadt Tianjin. Die chinesischen Stahlwerke würden wenig Eisenerz einlagern, um einem schwachen Cashflow vorzubeugen.
SEOUL, April 3 (Yonhap)-- POSCO, South Korea's biggest steelmaker, said Thursday that it has established a subsidiary to operate a clean energy business it picked as one of its future growth engines.
The subsidiary, named POSCO Green Gas Technology Co., will produce synthetic natural gas (SNG), a fuel gas that can be produced from fossil fuels such as lignite coal or from biofuel, the company said.
Qualität zum günstigen Preis. Zumindest sieht einer unserer Lieblings-Investoren Arnold van den Berg es so. Er war ebenso frühzeitig vor dem Goldaufschwung positioniert. Eine alte Kaufmannsregel besagt ?Im Einkauf liegt der Gewinn?. Posco ist auf dem aktuellen Niveau für uns ein Schnäppchen mit einem ersten Potenzial bis 90-100 USD.
SEOUL, May 16 (Yonhap) -- South Korea's top steelmaker, POSCO, on Friday said it has begun a corporate drive aimed at streamlining its operations as it aims to improve its fiscal health and competitiveness.
The company's board of directors, convened for the first time since new CEO Kwon Oh-joon took office in mid-March, reviewed mid- to long-term strategies that call for drastically improving the financial health of the steelmaker and focusing on core business areas.