Posco Holdings Could Face Downside Risk from Weaker Lithium Prices
Dow Jones
Yesterday
0631 GMT - Posco Holdings could face downside risk from weaker lithium prices as it diversifies beyond steel, say Cindy Park and Dongmin Lee at Nomura. The analysts cite the recent decline in lithium prices as a near-term risk for the South Korean steelmaker, which owns battery-material supplier Posco Future M. Lithium prices fell to $19,587 a tonne on Sep. 27 from $29,205 on May 12, they note. The company also faces a potential increase in China's steel output and exports, they add. Nomura downgrades the stock to neutral from buy and cuts its target price to 330,000 won from 450,000 won. Shares are 2.4% lower at 310,500 won.
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