POSCO's Q1 Profitability Rebounds on Cost Discipline and Strategic Premium Focus

POSCO's steel segment operating profit per ton rose to USD 31.4 in Q1 2025, up from USD 28.2 in Q4 2024 and USD 26.5 a year ago, reflecting a 19% quarter-on-quarter improvement. This rebound occurred despite lower crude steel sales volumes, supported by:

Higher average selling prices for carbon steel (up KRW 6k/t QoQ)

Cost reductions in raw materials, labor, and commissions

A continued shift toward premium-grade and low-emission products

Total steel revenue in Q1 2025 was approximately USD 6.65 billion, with operating profit at USD 256 million. POSCO's strategic collaboration with Hyundai Motor Group, including a joint EAF investment in the U.S., reinforces its position in low-carbon steel and EV battery supply chains. These moves, alongside restructuring and overseas expansion in India and Vietnam, position POSCO to navigate trade barriers and benefit from emerging demand in mobility and infrastructure.

Overall, while domestic steel demand remains soft, margin resilience, premium product strategy, and localization initiatives point to cautious optimism for the rest of 2025.