Posco Holdings Inc (PKX) 2025 Q3 法說會逐字稿

Good afternoon. Thank you for joining us for the POSCO Holdings earnings call. Today we will have a presentation by POSCO Holdings, followed by a Q&A session with the participants. (Operator Instructions)

午安.感謝您參加浦項控股公司財報電話會議。今天我們將聽取浦項鋼鐵控股公司的演講，隨後將進行與與會者的問答環節。（操作員指示）

Now let us begin POSCO Holdings 2025 Q3 earnings release call.

現在讓我們開始浦項控股2025年第三季財報電話會議。

Good afternoon everyone. I am Seung Jun Kim, CFO at POSCO Holdings. Thank you for joining POSCO Holdings Q3 earnings call despite your very busy schedules. In the third quarter, as protectionist policies took more concrete shape across countries, the external uncertainties that had continued since the first half became even more complex.

大家下午好。我是金承俊，浦項控股公司財務長。感謝您百忙之中抽空參加浦項控股第三季財報電話會議。第三季度，隨著各國保護主義政策更加具體化，上半年以來持續存在的外部不確定性變得更加複雜。

Amid these conditions, POSCO Holdings on a consolidated basis recorded revenue of KRW17.3 trillion and operating profit of KRW640 billion. Despite losses at POSCO E&C, consolidated OP has bottomed out in the fourth quarter of last year and improved the three consecutive quarters.

在這些條件下，浦項鋼鐵控股公司合併後的收入為 17.3 兆韓元，營業利潤為 6,400 億韓元。儘管浦項建設出現虧損，但合併後的營業利潤在去年第四季觸底反彈，並連續三個季度有所改善。

By key business sector, for sales performance continued to improve. POSCO's average NIM margin was comparable to that of last quarter, but sales volume rose, and the company's proactive cost cutting efforts drove up operating profits.

依主要業務領域劃分，銷售業績持續改善。浦項製鐵的平均淨利差與上一季持平，但銷售量上升，公司積極主動的成本削減措施也推高了營業利潤。

As a result, this quarter's OP margin recorded 6.6%. In steel, although EU duty free quotas have been reduced and tariffs on steel products increased, Korea's steel market is normalizing. And therefore, we will strive to sustain a solid level of profitability going forward.

因此，本季的營業利潤率為 6.6%。儘管歐盟減少了鋼鐵產品的免稅配額並提高了關稅，但韓國鋼鐵市場正在恢復正常。因此，我們將努力維持未來穩定的獲利水準。

In rechargeable battery materials, losses narrow sharply QoQ. This was because at POSCO Future M, cathode sales volume increased ahead of the IRA benefits sunset and at our lithium operations, the price rebound led to reversal of inventory valuation losses.

在可充電電池材料中，損耗會急劇縮小。這是因為在 POSCO Future M，正極材料銷量在 IRA 福利終止前有所增長，而在我們的鋰業務中，價格反彈導致庫存估值損失扭轉。

As mentioned during the last earnings call, our top priority in lithium are ramping up new plants, improving process efficiency, and completing customer qualifications through to contract signing. Going forward, we will ensure disciplined execution, working to avoid any additional costs from ramp up delays and ultimately securing production efficiency and price competitiveness.

正如上次財報電話會議上提到的，我們在鋰業務方面的首要任務是提高新工廠的產能，提高工藝效率，並完成客戶資格審核直至合約簽署。展望未來，我們將確保嚴格執行，努力避免因產能爬坡延遲而產生的額外成本，並最終確保生產效率和價格競爭力。

In infrastructure, POSCO International maintained solid profits during the summer peak power season. However, as for POSCO E&C, we recognized the full estimated loss from the Shinansan accident and booked a portion of roughly one month of business suspension losses related to the safety incident, therefore, profits declined.

在基礎設施方面，浦項國際在夏季用電高峰期維持了穩健的獲利能力。然而，對於浦項建設公司而言，我們確認了新南山事故造成的全部估計損失，併計入了與該安全事故相關的約一個月停業損失的一部分，因此利潤下降。

For POSCO E&C, we expect to recognize the remaining business interruption losses in full in Q4. The results are unlikely to improve meaningfully. But once most of these one-off losses are accounted for in this year, we expect to return to normal level of profitability from next year.

對於 POSCO E&C，我們預計將在第四季度全額確認剩餘的業務中斷損失。結果不太可能出現實質改善。但一旦今年大部分一次性損失得到彌補，我們預計從明年開始獲利將恢復到正常水準。

We at POSCO Group are focused on creating a safe workplace through group-wide safety management innovations. To prevent similar safety incidents, we will establish a comprehensive group-wide safety master plan, and all of us, employees and management will do our utmost to drive the safe workplace initiative.

浦項鋼鐵集團致力於透過集團範圍內的安全管理創新，創造安全的工作場所。為防止類似安全事故再次發生，我們將制定集團範圍內的全面安全總體規劃，我們所有員工和管理層都將盡最大努力推進安全工作場所倡議。

Now our Head of IR will give a more detailed presentation on 2025 Q3 results.

現在，我們的投資人關係主管將就 2025 年第三季業績作更詳細的介紹。

I would like to present the earnings performance by each business sector, page 5. With the safety incidents at POSCO E&C, POSCO Group has taken the opportunity to exert our utmost efforts and make new investments to improve our safety systems. We will share our progress regularly to our investors on a half yearly basis, and update you on major practices to reinforce workplace safety. This is what we will share in our progress.

我想在第 5 頁介紹各業務部門的獲利狀況。鑑於浦項建設公司發生的安全事故，浦項集團已藉此機會盡最大努力並進行新的投資，以改善我們的安全系統。我們將每半年定期向投資者報告進度，並向您通報加強工作場所安全的主要措施。這就是我們將要分享的進展。

In July, a CEO direct report, Group Safety Task Force was launched along with comprehensive group-wide safety measures. First, worker participation is encouraged as agents of prevention. Second, systems will drive our safety priorities. Finally, union communication is mobilized to enhance on-site operability.

7 月，公司成立了由執行長直接領導的集團安全工作小組，並採取了全面的集團安全措施。首先，鼓勵工人參與，將其作為預防力量。其次，系統將決定我們的安全優先事項。最後，工會溝通被調動起來，以提高現場操作能力。

To add more detail, when any element of danger is discovered, a worker has the authority to stop operation. To encourage this authority to stop work, we have introduced a new program. For safety budget, the rule is to administer first and report thereafter.

更詳細地說，當發現任何危險因子時，工人有權停止作業。為了促使該機構停止工作，我們推出了一項新計劃。對於安全預算，規定是先執行，後再報告。

Lowest better bidding system has been abolished across the group. Instead, a fair bidding system has been put in place. Safety technologies are developed too. On the next page, we list our accident rates, serious accidents, and LTIFR.

集團已全面廢除最低價得標制度。取而代之的是，已經建立了一套公平的競標制度。安全技術也在不斷發展。下一頁，我們列出了事故率、嚴重事故率和 LTIFR。

Since the last incident, all work has been suspended at POSCO E&C sites and other group work sites deemed high risk in order to perform safety inspections. In early September, an MOU was signed with SGS, Swiss safety service firm to enhance objectivity and safety diagnoses.

自上次事故發生以來，浦項建設公司所有工地以及其他被認為風險較高的集體工地已暫停施工，以便進行安全檢查。9月初，公司與瑞士安全服務公司SGS簽署了一份諒解備忘錄，以提高客觀性和安全診斷水準。

Then we launched our own professional firm, POSCO Safety Solution. We're also setting up a career foundation for victims of industrial incidents as our promise to CSR. This will be completed by the first quarter of 2026. The safety of our citizens and employees is POSCO Group's most important value. In recognition of this value, we pledge to do our very best to prevent safety incidents.

然後我們成立了自己的專業公司—浦項安全解決方案公司。作為我們對企業社會責任的承諾，我們也將為工業事故受害者設立職涯發展基金會。這項工程將於2026年第一季完成。浦項鋼鐵集團最重視的是公民和員工的安全。秉持這項價值觀，我們承諾盡力防止安全事故的發生。

Portfolio management update. In the third quarter, we restructured seven projects generating KRW400 billion in cash. Uzbek textile plant and overseas non-core business sites have been sold. Cross ownership of NSC's shares have also been sold off. Therefore, the portfolio management that began in early 2024 has completed 63 projects, generating KRW1.4 trillion in cash.

投資組合管理更新。第三季度，我們重組了七個項目，產生了 4,000 億韓元的現金。烏茲別克紡織廠和海外非核心業務基地已出售。NSC的交叉持股也已出售。因此，自 2024 年初開始的投資組合管理已完成 63 個項目，產生了 1.4 兆韓元的現金。

Next is a deep dive into each company performance. First POSCO, operating profit was KRW322 billion in the final quarter of last year, and KRW346 billion in the first quarter and KRW513 billion in the second quarter of this year.

接下來將深入分析每家公司的表現。首先是浦項製鐵，去年第四季的營業利潤為3,220億韓元，今年第一季為3,460億韓元，第二季為5,130億韓元。

In the third quarter, we registered KRW585 billion which shows a continuous pattern of recovery. Despite a 4.9% increase in production volume, quarterly sales price continued to decline, so revenue dropped 1.7% against the previous quarter. However, various cost cutting efforts have led to a recovery of 6.6% OP margin rate.

第三季度，我們實現了5,850億韓元的營收，顯示出持續復甦的態勢。儘管產量增加了 4.9%，但季度銷售價格繼續下降，因此收入比上一季下降了 1.7%。然而，各種成本削減措施已使營業利潤率恢復至 6.6%。

Domestic market demand continues to slow. Imports flooded the market prior to the AD ruling. Therefore, this quarter's sales price dropped by about KRW25,000 per ton against the previous quarter. Key raw materials costs also dropped, keeping the average mill margin similar to last quarter.

國內市場需求持續放緩。在反傾銷法令頒布之前，進口商品大量湧入市場。因此，本季銷售價格較上一季每噸下降了約25,000韓元。主要原物料成本也出現下降，使得工廠平均利潤率與上季基本持平。

However, production volume increase led to a higher operation rate, but through cost cutting efforts and raw materials purchased among others, profit has improved. Proportion of exports in the third quarter rose to about 49.3%.

然而，產量增加導致營運率提高，但透過削減成本和採購原材料等措施，利潤有所改善。第三季出口比上升至約 49.3%。

In the fourth quarter, production volume will decline moderately against the third quarter due to scheduled repairs on the Pohang rolling line due to imports that flooded the market prior to AD ruling. Inventory is saturated at customer end and in distribution. In the fourth quarter, we anticipate seasonal demand drop and depletion of distribution inventory.

由於反傾銷令頒布前進口商品湧入市場，浦項軋鋼生產線需要進行計畫維修，因此第四季產量將比第三季略有下降。客戶端和分銷環節的庫存都已飽和。預計第四季將出現季節性需求下降和分銷庫存減少的情況。

However, in the fourth quarter, temporary adjustment period will be coupled with our efforts to upgrade efficiency and market normalization owing to AD ruling. So in 2026, steel profits will increase overall compared to the current year.

然而，在第四季度，由於反傾銷法規的實施，我們將努力提高效率並實現市場正常化，同時進行臨時調整。因此，到 2026 年，鋼鐵利潤總體上將比今年有所增長。

Page 9, overseas steel. Overseas steel profits will experience moderate decline due to slow quarterly performance in Mexico and other rolling mills. So the large plants, overseas plants, their performance is projected here. Indonesia and Vietnam; Vietnam will hold steady to the previous quarter. Profits shrank in India due to major repairs.

第9頁，海外鋼鐵。由於墨西哥和其他軋鋼廠季度業績疲軟，海外鋼鐵利潤將出現小幅下滑。所以，大型工廠、海外工廠的業績預測都在這裡。印尼和越南；越南將與上一季保持穩定。由於大修，印度的利潤縮水。

Page 10, POSCO Future M. Owing to the (inaudible) IRA benefit sunset impact, cathode anode active material sales almost doubled to register KRW56 billion operating profit. Lithium plants such as POSCO (inaudible) in Argentina are steadily and surely ramping up their plants. The size of the quarterly loss has declined against the previous quarter. However, lithium price hike led to a reversal in inventory valuation loss, which amounted to about KRW37 billion.

第 10 頁，POSCO Future M。由於（聽不清楚）IRA 福利終止的影響，陰極陽極活性材料的銷售額幾乎翻了一番，實現了 560 億韓元的營業利潤。像阿根廷的浦項製鐵（聽不清楚）這樣的鋰工廠正穩定擴大其產能。本季虧損額較上一季下降。然而，鋰價上漲導致庫存估值損失出現逆轉，損失金額約 370 億韓元。

Page 11, POSCO International. POSCO International registered a profit similar to the previous quarter. While profits went up in energy business, it was offset by seasonal lows in the Indonesian palm farm and fluctuating steel trade, triggered by changing policies in the US and the EU.

第 11 頁，浦項國際。浦項國際公司實現的利潤與上一季基本持平。儘管能源業務利潤有所增長，但印尼棕櫚種植園的季節性低迷以及受美國和歐盟政策變化引發的鋼鐵貿易波動抵消了這一增長。

Page 12, POSCO E&C. In the third quarter, the Sinansan incident costs and overseas project losses were accounted for as a one-time costs of KRW288.1 billion, recording a deficit. In the fourth quarter, an additional KRW230 billion costs will likely be needed.

第 12 頁，POSCO E&C。第三季度，新南山事故成本和海外專案損失被計入一次性成本2881億韓元，造成虧損。第四季可能還需要額外投入2,300億韓元。

However, because the predominant share of the accident costs will be accounted for within this year, in 2026, we anticipate that POSCO E&C will transition to a profit and begin generating OP similar to pre-acident times. This concludes the earnings report of POSCO Holdings. We'll now move straight into the Q&A.

然而，由於事故成本的大部分將在今年內得到彌補，因此我們預計，到 2026 年，浦項工程建設將實現盈利，並開始產生與事故發生前類似的營業利潤。浦項控股的獲利報告到此結束。接下來我們將直接進入問答環節。

(Operator Instructions) Park Hyun-Wook, Hyundai Motor Securities.

（操作說明）樸賢旭，現代汽車證券。

Hello, I am Park Hyun-Wook. Thank you for giving me the opportunity to ask a question. I have three questions for you. First is regarding the business plan that is under development with regards to steel market outlook in the fourth quarter regarding the hot rod, I would like to know about the AD or anti-dumping effects of China and Japan. Can you elaborate on that?

您好，我是樸賢旭。謝謝您給我提問的機會。我有三個問題想問你。首先是關於正在製定的第四季度熱棒鋼材市場前景的商業計劃，我想了解中國和日本的反傾銷措施的影響。能詳細說明一下嗎？

And briefly, can you share with us the guidance about the market outlook for next year from POSCO's perspective. Second question is, from next year, there is the carbon related cost, I believe there are two issues at hand. One of that is the CBAM of EU will come into force. And in the first year, the impact could be minimal, but the cost could be more and more in the next year to follow.

能否簡要地從浦項製鐵的角度分享您對明年市場前景的展望？第二個問題是，從明年開始，將會出現與碳排放相關的成本，我認為目前有兩個問題需要解決。其中之一是歐盟的《海關和海關條例》(CBAM) 將生效。第一年的影響可能很小，但在接下來的幾年裡，成本可能會越來越大。

And when it comes to carbon trade emissions, when it comes to set, I believe that the cost could go up as well. So I would like to know about POSCO Holdings response to countermeasures with regards to these two potential changes.

至於碳排放交易，就設定而言，我認為成本也可能會上升。因此，我想了解浦項鋼鐵控股公司針對這兩項潛在變化所採取的應對措施。

And the third is about POSCO International. So in Alaska LNG project, I believe that project is under review and I've read an article on this issue. So if this project becomes realized, I would like to know how much of an annual sales volume will be impacted from the POSCO's side.

第三點是關於浦項國際的。所以，關於阿拉斯加液化天然氣項目，我相信該項目正在接受審查，我已經讀過一篇關於這個問題的文章。所以如果這個項目得以實現，我想知道浦項製鐵的年銷售額會受到多大影響。

And I'd like to ask an additional question regarding EU CBAM. So recently in the EU, there was a reduction of duty free quotas and there is also an increase of tariffs that was announced by the EU. But when it comes to Korea, the export regulations in Korea are quite strict, and I think the same applies to POSCO.

我還想問一個關於歐盟CBAM的問題。所以最近歐盟減少了免稅配額，同時歐盟也宣布提高關稅。但說到韓國，韓國的出口管制非常嚴​​格，我認為浦項鋼鐵也是。

So if all of these are realized, I would like to know from POSCO Holdings' perspective, what kind of countermeasures that you would have. Thank you.

如果這些情況都發生了，我想知道從浦項製鐵控股公司的角度來看，你們會採取什麼樣的應對措施。謝謝。

Now with regards to the first question, I believe that the Mr. Lee, Won-Chul of the Steel Business Management as well as POSCO Marketing Strategy. So the first question will be addressed by the Head of POSCO Marketing Strategy; and second by the Steel Business Management Head. You can answer the questions respectively.

關於第一個問題，我認為李元哲先生（Lee, Won-Chul）負責鋼鐵業務管理以及浦項製鐵（POSCO）的行銷策略。因此，第一個問題將由浦項製鐵行銷策略主管回答；第二個問題將由鋼鐵業務管理主管回答。您可以分別回答這些問題。

Yes, I'm Head of Marketing Strategy. With regards to the fourth quarter steel market outlook, I believe that will be very difficult to directly link it with the hot rod anti-dumping. Because in August and September, before imposed, there is the imports that are being distributed in the market before the provisional tariffs that were imposed.

是的，我是市場策略主管。關於第四季鋼鐵市場前景，我認為很難將其與熱軋鋼反傾銷直接連結起來。因為在 8 月和 9 月，也就是臨時關稅實施之前，進口商品已經在市場上流通。

And since it is a non-peak season, it will be very difficult to translate them directly into demand for now, but the inventory for the stocks will be all used up before the fourth quarter is our expectation. And focusing on the (inaudible) market from November and December, we believe to see some positive impact that will come along.

由於目前並非旺季，因此很難將這些庫存直接轉化為需求，但我們預計庫存將在第四季度之前全部售罄。我們相信，從 11 月和 12 月開始，專注於（聽不清楚的）市場將會帶來一些正面的影響。

When it comes to the steel market trend next year, globally, it is estimated that the growth will be around 1% or 2%, but mostly will be focused on India or Southeast Asia, that are high growth regions.

展望明年全球鋼鐵市場趨勢，預計成長率約為 1% 或 2%，但主要將集中在印度或東南亞等高成長地區。

And especially this year, the demand fell in US and Europe. We believe that the demand would pick up next year. But when it comes to China following this year as well, the demand is expected to decline next year as well. And as for Korea, there are some ups and downs or positive and negative factors.

尤其是今年，美國和歐洲的需求下降了。我們認為明年需求將會回升。但就中國市場而言，繼今年之後，預計明年需求也將持續下降。至於韓國，情況則有起有落，既有正面因素也有負面因素。

Regarding the AD tariffs, if the price goes up dramatically, then the customers that are dependent on exports, their demands would be slightly decline. But as for Korea, since the situation was not very good this year, we believe that things would pick up next year. So when it comes to Korea, we believe that the (inaudible) market will stay pretty much the same.

關於反傾銷稅，如果價格大幅上漲，那麼依賴出口的客戶的需求將會略有下降。但就韓國而言，由於今年的情況不太好，我們相信明年情況會好轉。所以就韓國市場而言，我們認為（聽不清楚）市場將基本保持不變。

Yes, I am [Hong, Jun Young] of the Trade and Investment Office. Regarding the EU's CBAM from 2026, the CBAM will be implemented and there will be certification of costs that will be incurred, but because of the streamlined law that was enacted, we believe that these costs will be put off to 2027.

是的，我是貿易投資署的洪俊英。關於歐盟從 2026 年開始實施的 CBAM，CBAM 將予以實施，並且會產生相關費用，但由於頒布了簡化的法律，我們認為這些費用將被推遲到 2027 年。

And with the duty free quota reduction, we believe that the importers' burden will be much less than we expected. But as for the free allowances of benchmark of Europe will be shortened and it will be -- it will phase out. So the certification burden will go up and up year by year.

隨著免稅配額的減少，我們相信進口商的負擔將比我們預期的要輕得多。但是，歐洲基準的免費配額將會縮短，而且將會逐步取消。因此，認證負擔將逐年增加。

Now when it comes to CBAM rights and the calculations, all of these relevant details or regulations are not announced yet, so that is causing uncertainty in the Korean market. But there is a European ETS system, and based on the identified information, we're going to develop our guideline as for how to counter the CBAM initiative or implementation.

目前，關於 CBAM 權利和計算，所有這些相關細節或規定都尚未公佈，因此為韓國市場帶來了不確定性。但是歐洲已經有了碳排放交易體系，我們將根據已確定的資訊制定應對CBAM倡議或實施的指導方針。

Going forward, we will continue to address alternatives regarding CBAM and double our efforts in reducing carbon printed, and we will continue to engage in communication with the EU.

展望未來，我們將繼續探討 CBAM 的替代方案，加倍努力減少碳排放，並將繼續與歐盟溝通。

Now I'm Jin Nyoung Yoo from the POSCO Environment Energy. I'd like to answer about the ETS. So when it comes to the tier 4 or the phase 4 ETS or emissions, we have had a workshop. And in the beginning, it was about [35 million] in the third phase and fourth phase it was about [2.5 billion] tons, so there was a huge reduction compared to phase 3.

我是浦項鋼鐵環境能源公司的柳真英。我想回答有關ETS的問題。所以，對於第四階段排放標準或第四階段排放交易體系，我們已經舉辦過一次研討會。最初，第三階段的產量約為 3,500 萬噸，第四階段約 25 億噸，與第三階段相比，產量大幅下降。

We believe that we'll be able to reduce much more carbon footprint in phase 4. And when it comes to the prior alliances for the power generation sector, it will be 15% lower than the phase 3, so our alliances at POSCO will be drastically reduced as well.

我們相信在第四階段，我們將能夠大幅減少碳足跡。至於先前在發電領域的聯盟，將比第三階段減少 15%，因此我們在浦項製鐵的聯盟也將大幅減少。

Now when it comes to the fourth phase allowances of the government, it has not been confirmed yet. It will be confirmed sometime in November. And by a company, it will be confirmed sometime in December. So as for today, when it comes to phase 4 at POSCO from 2027, the allowances of credits will be lacking, so we may have to purchase additional credits.

至於政府第四階段的補貼措施，目前尚未確認。將於11月某個時候得到確認。該公司將在12月某個時候確認此事。因此，就目前而言，從 2027 年開始的 POSCO 第四階段，碳信用額度將不足，因此我們可能必須購買額外的碳信用額度。

So in order to minimize costs when it comes to ETS, we want to -- we will run the EAF furnace by 2025 that is able to produce about 2.5 million tons per year, so that we'll be able to reduce carbon footprint during the manufacturing process. And when it comes to the steel making, we will continue to expand the use of scraps for environmental friendliness, and leverage OTBB.

因此，為了最大限度地降低 ETS 的成本，我們希望——到 2025 年，我們將運行 EAF 爐，該爐每年能夠生產約 250 萬噸，這樣我們就能夠在製造過程中減少碳足跡。在煉鋼方面，我們將繼續擴大廢鋼的使用，以實現環保目標，並充分利用OTBB技術。

I am [Wuyong Dae] from Infra Project team, our office. So I think there was a question about a project of Alaska. So when it comes to investment volume amount as well as the LNG fluctuations, and also risks associated with it, so we are fully looking into this project and it is under review.

我是來自我們辦公室基礎設施項目組的[Wuyong Dae]。所以我想當時問的是關於阿拉斯加的一個計畫。因此，考慮到投資金額、液化天然氣價格波動以及與之相關的風險，我們正在全面研究該項目，目前正在審查中。

But if we implement this project in terms of steel supply, we would be able to supply about 300,000 tons through this project and the timeline would be 2026 to 2028. So in a span of about three years, it'll be 300,000 tons, the LNG fuel, and so forth.

但如果我們從鋼鐵供應的角度來實施這個項目，我們將能夠透過這個項目供應約 30 萬噸鋼鐵，時間表將是 2026 年至 2028 年。因此，大約三年內，液化天然氣燃料的產量將達到 30 萬噸，等等。

We'll take the next question.

我們來回答下一個問題。

iM Securities, Kim, Yoon-Sang.

iM證券，金允相。

Hello, my name is Kim, Yoon-Sang. I'd like to ask three questions. First, mid to long-term steel strategies, whether it's the EU or the US or tariffs on Southeast Asian nations, I think a lot of the companies, including the Chinese companies, are seeing a first time deficit. And so these burdens will increase over time.

你好，我叫金允相。我想問三個問題。首先，就中長期鋼鐵戰略而言，無論是歐盟、美國或對東南亞國家徵收關稅，我認為許多公司，包括中國公司，都面臨前所未有的逆差。因此，隨著時間的推移，這些負擔將會加重。

In the case of NSC, their local capacity is going to be decreased, and then their overseas capacity increased through investments in the US and other parts of the world. Perhaps POSCO should have some of these mid to long-term strategies as well, so I'd like to know what your response is.

以 NSC 為例，其本地產能將會下降，然後透過在美國和世界其他地區的投資來提高其海外產能。或許浦項鋼鐵也應該制定一些中長期策略，我想知道您的回覆。

And secondly, because the steel business is becoming more ambiguous and more unpredictable, I think you must be looking into some new investment strategies, and this may be too early to tell, but because of some of your projects in the pipeline right now in the United States and in India, there's a lot of CapEx increase, and we're also hearing about your potential participation in acquiring HMM. So when the steel business is becoming more unpredictable, I want to know what kind of investment plans you have in other areas of your business.

其次，由於鋼鐵業變得越來越不確定和難以預測，我認為您一定在考慮一些新的投資策略，現在下結論可能還為時過早，但由於您目前在美國和印度有一些正在籌備的項目，資本支出大幅增加，而且我們也聽說您可能參與收購 HMM。因此，在鋼鐵業變得越來越難以預測的情況下，我想知道貴公司在其他業務領域有哪些投資計畫。

And third, there has been some restructuring in the steel business but also restructuring in the battery businesses in China as well. In relation to our or your market position in these businesses, what is the impact? Those are my questions.

第三，中國的鋼鐵業進行了一些重組，電池產業也進行了一些重組。就我們或貴公司在這些產業的市場地位而言，會產生什麼影響？這些都是我的問題。

So first, from the Marketing Strategy Office; and second question I will answer, and the third question, I think Mr. [Lee Jae Young] from Energy Materials Business Management can answer.

首先，我來自市場策略辦公室；第二個問題我將回答，第三個問題，我認為能源材料業務管理部的李在英先生可以回答。

So what about our steel business and our future strategy? When we look at some of the examples that were provided by you, such as NSC, our plans for future facility investment, I think is the gist of your question. So we have some similarities with the NSC's strategies because yes, there are some demand declines in the local market, and yes, we do intend to try and increase capacity in overseas locations. So these are the similarities.

那麼，我們的鋼鐵業務和未來策略又將如何呢？當我們審視您提供的一些例子，例如 NSC，以及我們未來設施投資計劃時，我認為這就是您問題的要點。因此，我們與國家安全委員會的策略有一些相似之處，因為本地市場確實存在一些需求下降的情況，而且我們也確實打算嘗試增加海外地區的產能。以上就是相似之處。

But in the domestic market, for the past several years, we have been doing away with facilities -- shutting down facilities that are not as competitive. Instead, we are making investments in new facilities for electrical steel, and EAF as well. So same thing into the future.

但在國內市場，在過去幾年裡，我們一直在淘汰那些競爭力不強的工廠——關閉那些競爭力不足的工廠。相反，我們正在投資建造新的電工鋼生產設施以及電弧爐煉鋼設施。未來也會如此。

If we feel that some of our facilities are using competitiveness, then we will be shutting them down, but we will also at the same time identify new growth areas to be -- to make sure that we make investments for the future.

如果我們認為某些設施存在競爭行為，我們將關閉這些設施，但同時我們也會確定新的成長領域，以確保我們為未來進行投資。

As you've already read in the papers, I'm sure the new growth markets are the United States and India, and these are specifically the markets that we're analyzing, and we're taking steady steps to see what we may be able to do there.

正如你們已經在報紙上讀到的那樣，我相信新的成長市場是美國和印度，而這些正是我們正在分析的市場，我們正在穩步推進，看看我們能在那裡做些什麼。

The second regarding investment priorities, let me answer that question. For example, for environmental investments such as in (inaudible), this is something that we are pursuing as a national project as well. So in terms of priority, this is probably top priority.

關於投資重點的第二個問題，讓我來回答這個問題。例如，對於環境投資，例如（聽不清楚），這也是我們正在作為國家計畫推進的事情。因此，就優先順序而言，這可能是最重要的事。

For overseas capacity additions, this would be in the steel business. So we are focused on certain growth markets, and that is the focus of our future strategy. So we are working with JSW in India and Hyundai Motors in the United States, as well as PTKP expansion in Indonesia and looking into the Whyalla Steelworks in Australia. These are some of the things that are in our pipeline. But priority wise, India, Indonesia and Australia are our sequence of priorities.

如果是海外新增產能，將主要集中在鋼鐵業。因此，我們專注於某些成長型市場，這也是我們未來策略的重點。因此，我們正在與印度的 JSW 和美國的現代汽車公司合作，同時也在印尼與 PTKP 進行擴張，並正在檢視澳洲的 Whyalla 鋼鐵廠。這些是我們正在籌備的一些項目。但就優先順序而言，印度、印尼和澳洲是我們的優先順序。

In rechargeable battery materials, we have investments that have already been made that are being stabilized, so we will be adjusting speed a little bit, but we will also take advantage of the market situation so that we can acquire some blue chip assets, and so this is part of our priority as well.

在可充電電池材料領域，我們已經進行了一些投資，這些投資正在逐步穩定下來，因此我們將稍微調整投資速度，但我們也會利用市場形勢，收購一些優質資產，這也是我們工作的重點之一。

And finally, as a separate effort for long-term growth potentials, if we believe that certain business sectors align with our strategy and they promise size in the future, we are willing to make M&A efforts as well.

最後，為了實現長期成長潛力，如果我們認為某些業務領域符合我們的策略，並且未來有發展規模的潛力，我們也願意進行併購活動。

In response to your third question, my name is (inaudible) I am with Energy Materials Business Management. So there are some restructurings that are going on. The impact is price increase, especially in lithium. So with this price rebound, we are able to take advantage of some of our processes and also some of the subsidies are going away.

關於你的第三個問題，我的名字是（聽不清楚），我來自能源材料業務管理部門。所以目前正在進行一些重組。其影響是價格上漲，尤其是鋰的價格上漲。因此，隨著價格反彈，我們可以利用我們的一些流程，而且一些補貼也即將取消。

And between the materials producers in Korea and China, that price gap is actually being eliminated. So as they reach the US ports, the difference in price between Chinese materials and our materials is almost none. So that's one impact.

韓國和中國原材料生產商之間的價格差距實際上正在被消除。因此，當這些材料到達美國港口時，中國材料和我們材料之間的價格差異幾乎為零。這是其中一個影響。

And then the other is with the difficulties that are growing to the Chinese market, there are certain problems that are becoming more prolonged. For example, next year, lithium price this year is between $8 to $9, very low. And so almost no smelter is able to make a profit. Next year, everyone is expecting the price to go up to $10, and then by the second half of next year to $15.

另一方面，中國市場面臨的困難日益增多，某些問題也變得越來越持久。例如，明年鋰價將比今年低 8 至 9 美元。因此，幾乎沒有冶煉廠能夠獲利。明年，大家都預期價格會漲到 10 美元，然後到明年下半年漲到 15 美元。

So a dramatic performance improvement next year. I can't guarantee that, but I can say with some level of certainty that things will improve next year. And ESS and other demand industries, if we can find some contracts and orders there, I think we can definitely look forward to some improvements.

所以明年成績會有顯著提升。我無法保證這一點，但我可以比較肯定地說，明年情況會有所改善。如果能在 ESS 和其他需求產業找到一些合約和訂單，我認為我們絕對可以期待一些改善。

Next question, please.

請問下一個問題。

Yi, Hyun-Soo, Yuanta Securities.

易賢洙，元大證券。

Hello, I'm Hyun-Soo from Yuanta Securities. I would like to ask you two questions. Some of it was addressed through the answer by the marketing personnel, but I think that the earliest from fourth quarter this year, POSCO raw materials drops will come to an end. That is my expectation.

您好，我是元大證券的賢洙。我想問你兩個問題。部分問題已透過市場人員的回答得到解答，但我認為最早從今年第四季開始，浦項製鐵原料的跌破價格將會結束。我的預期正是如此。

So in the third quarter, the selling price went down, but the raw materials actually went down as well. If there is no further drop in raw material prices because there are lots of inventory, maybe it will be difficult for the fourth quarter. But from the first quarter of next year, if the raw materials does not drop in terms of price, can we expect an increase in the price of the products?

因此，第三季售價下降了，但原物料價格實際上也下降了。如果由於庫存積壓導致原物料價格不再下降，那麼第四季可能會比較困難。但是，從明年第一季開始，如果原物料價格沒有下降，我們是否可以預期產品價格會上漲？

And the second is when we -- on the news in the beginning of November, we hear that there's going to be an announcement from the government about the important announcement made by the government.

第二件事是，11月初，我們在新聞中聽到政府將要發布一項重要公告。

Regarding the sophistication and modernization of the steel industry and when it comes to the plants too, I heard that stainless plant two, I heard that it could be suspended for operations or it will shut down operations by the end of this year. So I'd like to know about your plans as a company, and I know that (inaudible) three plants, is it going to be operational by the end of this year?

關於鋼鐵業的先進化和現代化，以及工廠的情況，我聽說二號不銹鋼廠可能會暫停運營，或者將在今年年底前停產。所以我想了解貴公司的計劃，我知道（聽不清楚）三家工廠，它們會在今年年底前投入運作嗎？

And when it comes to non-performing steel businesses and steel projects that you're going to restructure and manage, but when it comes to (inaudible) plants, I would like to know what is the operating profit. Is it plus or a minus? And I would like to know if you broke even for the (inaudible) or is it in deficit.

至於那些經營不善的鋼鐵企業和鋼鐵項目，你們需要進行重組和管理；但是，對於（聽不清楚）工廠，我想知道的是營業利潤是多少。是正號還是負號？我想知道你們的（聽不清楚）是否收支平衡，還是虧損了。

I am Head of the Marketing Strategy. I would like to answer the question. Now from fourth quarter, you said that the raw materials prices might stop dropping. There are still fluctuations in terms of market -- raw material prices. I believe that the price will remain at a comparable level.

我是行銷策略負責人。我想回答這個問題。您之前說過，從第四季開始，原物料價格可能會停止下降。市場方面——原材料價格——仍有波動。我認為價格將保持在相近水準。

And one of the profit factors or the factors that actually affected our profits is that we have been helped by the increasing spread with the drop of raw material prices. But next year, as mentioned earlier on, when it comes to steel market outlook, we don't think that it's going to turn around completely.

影響我們利潤的因素之一是原物料價格下降，導致利潤空間擴大，這對我們利潤成長起到了幫助作用。但正如前面所提到的，就明年的鋼鐵市場前景而言，我們認為它不會完全好轉。

In terms of volume, it's not going to go up, but when it comes to AD impact, we're seeing its impact on the plates, steel plates, and believe that the impact will be more pervasive by the end of this year. So when it comes to the average selling price, we expect that the prices will drive up.

就產量而言，它不會增加，但就 AD 的影響而言，我們已經看到了它對鋼板的影響，並且相信到今年年底，這種影響將更加普遍。因此，就平均售價而言，我們預計價格將會上漲。

But when it comes to the overall spread improvement, it depends on the auto formula. So in the first half of the year, the auto price is not going up. So maybe in the second or the third quarter next year, the profits or the results may be better. That's all from me.

但就整體價差改善而言，這取決於自動公式。所以今年上半年汽車價格不會漲。所以，或許明年第二季或第三季度，獲利或業績會更好。我要說的就這些。

I am (inaudible) from Steel Business Management. Now regarding the (inaudible) question about the modernization of the steel industry by the governments. In October, the Ministry of Trade and Industry and Energy already provided us with a guideline.

我是（聽不清楚）來自鋼鐵企業管理部門。現在來回答關於政府對鋼鐵業進行現代化改造的（聽不清楚）問題。10月份，貿易、工業和能源部已經向我們提供了指導方針。

And with regards to the unfair practices on fair trade and decarbonization of the steel market or steel industry and going for more value-added products, and there are also some measures according to specific product types. So these are the overall guidelines that will be further elaborated by the government.

至於公平貿易中的不公平做法、鋼鐵市場或鋼鐵業的脫碳以及追求更高附加價值的產品，也有一些措施是根據特定產品類型製定的。以上是整體指導原則，政府將對此進一步闡述。

As for a POSCO, we have also shared and presented some opinions regarding the government's proposals so that we are sort of reaching a consensus. When it comes to the overall capacity, I think it depends very much on the product item, comes to utilization and imports and penetration, all of these need to be taken into account for the overall master plan.

至於浦項製鐵，我們也分享並提出了一些關於政府提案的意見，以便我們能夠達成某種共識。就整體產能而言，我認為這很大程度取決於產品種類、利用率、進口量和市場滲透率，所有這些因素都需要納入整體總體規劃的考量。

So there will be a plan regarding the import resumption. And when it comes to the products, if the utilization is low and the import is very low, then we may have to draw up countermeasures to restructure it. So with regards to that, the (inaudible) bars and the steel bars will be a focus of the modernization. So POSCO's impact on the short-term will be very much limited.

因此，將會有一項關於恢復進口的計劃。至於產品方面，如果利用率低且進口量非常低，那麼我們可能需要製定應對措施來重組產品。因此，關於這一點，（聽不清楚的）欄桿和鋼筋將是現代化改造的重點。因此，浦項鋼鐵在短期內的影響將非常有限。

Now when it comes to the modernization policy of the government, this is not to increase the individual competitiveness of companies, but this is to boost to meet the security needs at the national level. So that is why at POSCO Group should work together with the government as one team.

現在，就政府的現代化政策而言，這並非是為了提高企業的個體競爭力，而是為了滿​​足國家層級的安全需求。所以，正因如此，浦項鋼鐵集團才應該與政府團結一致，共同努力。

Now regarding the (inaudible) plants and your question. In conclusion, regarding the (inaudible) operation, nothing has been decided yet. And as for (inaudible) it will begin operations from February, and there are some improvements that are being made, but we have expanded the scope of improvement and refurbishment, so we believe that the operation will go live sometime in December.

現在來說說（聽不清楚的）植物以及你的問題。總之，關於（聽不清楚）的手術，目前尚未做出任何決定。至於（聽不清楚），它將於二月份開始運營，目前正在進行一些改進，但我們已經擴大了改進和翻新的範圍，因此我們相信該運營將於十二月的某個時候上線。

Regarding finance profitability, I cannot delve deeper into it, but POSCO has turned to profit, so we expect to see profit from (inaudible) as well, and that is our expectation or estimation. Thank you.

關於財務獲利能力，我無法深入探討，但浦項製鐵已經轉虧為盈，所以我們預期（聽不清楚）也會獲利，這是我們的預期或估計。謝謝。

Next question?

下一個問題？

Eugene Securities, Eugene.

尤金證券，尤金。

Hello everyone. In China, what is the steel demand situation. What do you know about it?

大家好。中國的鋼鐵需求情況如何？你對此了解多少？

And secondly, Intel and MP Materials, there's a lot of financial assistance from these companies. With some of the agreements that were entered into with the United States, will we be able to get this kind of assistance too?

其次，英特爾和MP Materials這兩家公司提供了大量的財政援助。根據我們與美國達成的一些協議，我們是否也能獲得這類援助？

Secondly, through portfolio management, you've generated a lot of cash. I wonder what kind of investment plans you have. We've heard about some investments in the news. I'd like to get an update on those.

其次，透過投資組合管理，你已經累積了大量現金。我想知道您有哪些投資計劃。我們從新聞中聽說了一些投資項目。我想了解這些方面的最新進展。

And sorry for asking so many questions. You mentioned the ESS. Lithium demand next year, how much expansion or increase can we anticipate? Thank you.

不好意思問了這麼多問題。你提到了ESS。明年鋰需求量預計會成長多少？謝謝。

Marketing Strategy Office Chief. So restructuring of the steel industry in Chinese market, it's a question you ask every quarter. I'm sorry we can't give you any dramatically revealing response here. Since the two sessions in March and every time they have these (inaudible) meetings, they seem to make some announcements.

市場策略辦公室主任。所以，中國鋼鐵業的重組，是每季都要問的問題。很抱歉，我們無法在此提供任何具有戲劇性意義的答案。自從三月的兩次會議以來，每次他們舉行這些（聽不清楚的）會議時，似乎都會發布一些公告。

But most recently what we've heard is the results from the fourth (inaudible) session of the Central Committee. And although we don't have anything specific at the moment, what we've heard from here and there is that they are going to focus much more on the domestic market demand, and they want to enhance their quality as well.

但最近我們聽到的卻是中央委員會第四次會議（聽不清楚）的結果。雖然我們目前還沒有任何具體消息，但我們從各處聽到的消息是，他們將更加重視國內市場需求，他們也希望提高產品品質。

This is not limited to steel. I think they want to be more sustainable and focus on digital technology as well. And there is a Central Economic Work Conference that is scheduled to happen in December. I think we'll be able to hear more detail then, but I think they're definitely reducing production volume, and so there's definitely a movement toward production cutting.

這不僅限於鋼鐵。我認為他們也希望更加重視永續發展，並專注於數位技術。此外，中央經濟工作會議定於12月舉行。我想到時候我們就能聽到更多細節了，但我認為他們肯定在減少產量，所以肯定有削減產量的趨勢。

In the (inaudible) region, where a lot of steelmakers are congregated, some of the more competent ones are looking to differentiate. So I think some of the larger steelmakers who want to keep their capacity and operation rate high.

在（聽不清楚）地區，許多鋼鐵製造商聚集於此，其中一些能力較強的製造商正在尋求差異化。所以我認為一些規模較大的鋼鐵生產商希望保持其產能和高開工率。

However, at the end of this year, we'll definitely, I think, see some production volume cuts and this will continue into next year. I do believe we will start to see some capacity decreases and volume cuts as well.

但是，我認為今年年底肯定會出現產量下降，而且這種情況會持續到明年。我相信我們會看到產能下降和銷售減少的情況出現。

But because we're not seeing any real demand increases, depending on just how much production cuts they make, we will not be able to know exactly how much volume adjustment will happen in the market, but compared to this year -- next year, I think we may be able to anticipate about 10% cuts.

但由於我們沒有看到任何真正的需求成長，根據他們減產的幅度，我們將無法確切知道市場將發生多大的數量調整，但與今年相比——我認為明年我們或許可以預期減產約 10%。

Energy Materials Management Office. My name is (inaudible) I'd like to talk about investments. On June 30, in the state of Utah, AnSem Resources is an Australian company that we entered into an MOU agreement with.

能源材料管理辦公室。我的名字是（聽不清楚），我想談談投資。6月30日，在猶他州，我們與澳洲公司AnSem Resources簽署了諒解備忘錄。

AnSem up until now, has not received any subsidy from the federal government or the Utah government. Our project, joint project, prepares each other for commercial production, but first, we are doing pilot tests through demo plants. So the size is very small. And any subsidy from the US government is not something that we are ready to apply for.

迄今為止，AnSem公司尚未獲得聯邦政府或猶他州政府的任何補貼。我們的項目，也就是聯合項目，旨在為商業化生產做好準備，但首先，我們正在透過示範工廠進行試點測試。所以它的尺寸非常小。我們目前還沒有準備好申請美國政府的任何補助。

The third question I would like to answer. First, portfolio management has generated some cash, yes. But at the moment, we are trying to put this into generating business growth, non-leveraged -- as non-leveraged assets. And so this is going to go to managing our portfolio.

我想回答的第三個問題。首先，投資組合管理確實產生了一些現金流。但目前，我們正努力將這些資源轉化為非槓桿資產，以促進業務成長。因此，這筆錢將用於管理我們的投資組合。

And an update on HMM acquisition, in September and in October, we made disclosures on this on two occasions, so we are in a review stage and there is no decision that's been made about this acquisition. That's what was disclosed. And today, there is nothing remarkable to add to these previous disclosures. Thank you.

關於 HMM 收購案的最新進展，我們在 9 月和 10 月分別兩次披露了此事，因此我們目前處於審查階段，尚未就此次收購做出任何決定。這就是披露的內容。今天，除了之前披露的資訊之外，沒有什麼特別值得補充的內容。謝謝。

Lithium demands, let me answer that question. So there are three types of demands in lithium. One is in EVs and second is ESS. And the next is commercial grade lithium for glass making or metal alloys. So we are anticipating about 14 million EVs and next year about 16.5 million vehicles. So lithium demand was based on 1.2 million this year. And next year, we will produce 1.3 million tons.

鋰的需求，讓我來回答這個問題。所以鋰的需求有三種。一個是電動車，一個是儲能係統。接下來是用於玻璃製造或金屬合金的商用級鋰。因此，我們預計今年電動車銷量將達到約 1,400 萬輛，明年將達到約 1,650 萬輛。因此，今年的鋰需求量是基於 120 萬噸計算的。明年，我們將生產130萬噸。

We'll take the next question.

我們來回答下一個問題。

(inaudible), NH Investment Securities.

（聽不清楚）NH投資證券。

Hello, I'm (inaudible) from NH. Now regarding the [PPLS] in Portugal, Argentina, can you share with us about the update on its ramp up and when can it go for a full operation? And recently in Sweden, there was a news report about a company that would go bankrupt in Sweden. So I would like to know how we should take that, and from our perspective, is that a positive thing or how should we view this news.

你好，我是來自新罕布夏州的（聽不清楚）。關於葡萄牙和阿根廷的[PPLS]，您能否向我們介紹一下其啟動情況以及何時可以全面投入營運？最近瑞典有一則新聞報道，說瑞典一家公司即將破產。所以我想知道我們應該如何看待這件事，從我們的角度來看，這是一件好事嗎？或者我們該如何看待這則新聞？

Yes, to answer your first question. Portugal, Argentina is lithium brine. So usually we do a ramp up of two to three years. And last year in October, we went live. And sometime in November this year ramp up will be completed.

是的，回答你的第一個問題。葡萄牙和阿根廷是鋰鹵水。所以通常我們需要兩到三年的過渡期。去年十月，我們正式上線了。今年11月某個時候，產能提升工作將完成。

So according to our ramp up completion, we are undergoing qualification with customers. And as for PPLS, we have two plants. One is already under commercial operation and another one is a different technique or processing technique. So the completion was a bit delayed, but ramp up is underway until November. So in the beginning of next year, ramp up will be completed and we'll be engaged in commercial production.

根據我們的產能爬坡完成情況，我們正在接受客戶的資格認證。至於PPLS，我們有兩個工廠。其中一項已經投入商業運營，另一項則採用了不同的技術或加工技術。因此，完工時間有所延遲，但產能提升工作正在進行中，預計將持續到 11 月。因此，明年年初，產能爬坡工作將完成，我們將投入商業化生產。

Now regarding the second question. I'd like to provide you with the answer. So in Europe, as for the green steel, the target is 2027 to 2030, where the hydroxide -- lithium hydroxide was expected, but there are only two steel makers, (inaudible) these are the two steel makers that are going for green steel.

現在回答第二個問題。我想給你答案。所以在歐洲，就綠色鋼鐵而言，目標是 2027 年至 2030 年，屆時將採用氫氧化鋰，但只有兩家鋼鐵製造商（聽不清楚）正在研發綠色鋼鐵。

So in Europe, we need to have infrastructure to develop and manufacture hydrogen -- produce hydrogen, but that is being delayed by the steel makers, so one to two years.

因此，在歐洲，我們需要有基礎設施來開發和製造氫氣——生產氫氣，但這被鋼鐵製造商拖延了，所以需要一到兩年的時間。

So when it comes to Europe, the energy prices are quite high, and when it comes to infrastructure, the EU is providing CapEx and OpEx. But from the company's perspective, because of CO2 prices and hydrogen infrastructure conditions, there is not much progress. So by 2030, we believe that there is going to be quite a delay.

所以就歐洲而言，能源價格相當高，而就基礎設施而言，歐盟正在提供資本支出和營運支出。但從公司的角度來看，由於二氧化碳價格和氫能基礎設施條件的限制，進展並不順利。因此，我們認為到 2030 年將會出現相當大的延誤。

Any additional questions? Please confirm.

還有其他問題嗎？請確認。

(Operator Instructions) (inaudible) Eugene Securities.

（操作員指示）（聽不清楚）尤金證券。

Hello. I'd like to add a few more questions. Next year's lithium price, you anticipated will be about $10 to $15 and you say that your plans are going to be all ramped up in normal operation by early next year. So can we anticipate a transition into profit next year? In lithium demand, I think EVs are going to loom large. Could you provide a ratios for ESS and commercial grade materials as well?

你好。我想再補充幾個問題。您預計明年鋰價將在 10 至 15 美元左右，並表示您的計劃將在明年初全面啟動正常營運。那麼我們能否預期明年獲利？我認為電動車將在鋰需求方面佔據重要地位。能否提供ESS材料及商用級材料的比例？

Yes, I told you that we would be producing about 1.3 million, but the commercial grade is removed from here. That's going to be about 1.5 million. And what percentage of lithium goes into EVs? Currently it's 10%. It's going to be probably eventually about 20% to 30%. I think next year we will surpass 20%.

是的，我告訴過你我們會生產大約 130 萬個，但商業級產品已經從這裡下架了。那大概是150萬。電動車中鋰的含量佔比是多少？目前是10%。最終可能會達到 20% 到 30% 左右。我認為明年我們將超過20%。

And EBITDA based OP when price reaches about $10, I really couldn't give you an idea about whether we can turn a profit then because we're still ramping up.

當股價達到 10 美元左右時，基於 EBITDA 的營業利潤率，我真的無法告訴你我們那時是否能夠獲利，因為我們仍在加速擴張。

I would like to check once again, is there any further questions?

我想再確認一下，還有其他問題嗎？

Hanwha Investment Securities, Gwan.

韓華投資證券，關。

Hello. Thank you for giving me the opportunity to ask the question. Now one of the questions that was asked, I think it was partially answered. Maybe I missed it. Regarding the duty free quota reduction and the tariff increase of the EU, how is it going to impact our operations?

你好。感謝您給我機會提出這個問題。我認為，之前提出的一個問題已經得到了部分解答。也許我錯過了。歐盟削減免稅配額和提高關稅，這將如何影響我們的營運？

And when it comes to POSCO E&C, regarding the Sinansan line inventory valuation losses, what can we expect about its reversal in the fourth quarter?

至於浦項建設（POSCO E&C）的Sinansan生產線庫存估值損失，我們能期待它在第四季出現怎樣的逆轉？

Head of Marketing Strategy. Now regarding the quota reduction and tariff issues of Europe and how it's going to impact us. Now with regards to quota cut in Europe, it was something that was expected and of course, it's going to have an impact on our business. So as a countermeasure we see two-fold.

市場策略主管。現在來談談歐洲的配額削減和關稅問題，以及這將如何影響我們。至於歐洲的配額削減，這是意料之中的事，當然，這會對我們的業務產生影響。因此，作為應對措施，我們看到了兩方面。

We will be engaged in individual negotiations with the countries that we signed the FTA, so we are going to go for an outreach activity to secure more quota individually. And the second thing is that the market in Europe was quite good, so we have expanded the sales to Europe gradually.

我們將與簽署自由貿易協定的國家進行單獨談判，因此我們將進行外展活動，以爭取更多單獨配額。第二點是歐洲市場相當不錯，所以我們逐步擴大了在歐洲的銷售。

So out of these volumes that we expanded, there are -- we're going to reduce the volumes going to low profit customers and divert that to other customers. So of the volumes that are going to the EU, there are low profitable ones, so we want to divert those volumes to other regions or other customers, and we believe that that's going to offset the impact coming from Europe.

因此，在我們擴大的這些銷售中，我們將減少流向低利潤客戶的銷售量，並將這些銷售轉移到其他客戶。因此，在運往歐盟的貨物中，有一些利潤較低的貨物，所以我們想把這些貨物轉移到其他地區或其他客戶那裡，我們相信這將抵消來自歐洲的影響。

And depending on the final ton of the quota cut, we have developed different scenarios to respond to the situation. And last but not least, Europe and the US, the tariff barriers are going up. And the trade barriers are increasing, and there are regions that will have a lower trade barriers and there are also -- and we want to identify customers to whom we can actually build our influence in order to address the tariff issue as well.

根據配額削減的最終一噸金額，我們制定了不同的應對方案。最後但同樣重要的是，歐洲和美國的關稅壁壘正在提高。貿易壁壘正在增加，有些地區的貿易壁壘較低，而且──我們希望找到能夠真正發揮影響力的客戶，以便解決關稅問題。

Now with regards to the second question, I'd like to provide the answer. With regards to the POSCO E&C, the Sinansan line provisions, in the third quarter, all of it was reversed or recognized in full. Of course, when it comes to Sinansan line and its investigation report is going to be disclosed in the first quarter of next year. So by then, we'll be able to identify the gap with what we have recognized this quarter.

現在，關於第二個問題，我想給答案。關於浦項製鐵工程建設公司和新南山生產線撥備，第三季全部已衝回或全額確認。當然，關於新南山集團的調查報告將於明年第一季公佈。到那時，我們就能確定與本季已確認的差距了。

Not only for Sinansan line, but what is important is that for one month we suspended our operations for construction, so there is the losses incurring from the suspended construction. So partially, it was recognized in the third quarter. And in the fourth quarter, we're going to book the remaining. So we believe that in the fourth quarter, the additional cost that would be about [KRW230 billion].

不僅是新南山線，更重要的是，我們因施工而停運了一個月，也造成了停工帶來的損失。因此，部分收益已在第三季確認。第四季度，我們將完成剩餘的預訂。因此我們認為，第四季新增成本約為[2300億韓元]

And if that is the case, then one of losses, including the Sinansan line as well as the construction suspense, all of that will be booked in the fourth quarter, and from next year, we'll be able to return to normal levels. Thank you.

如果情況真是如此，那麼包括新南山生產線和建設項目在內的部分損失，都將計入第四季度，從明年開始，我們將能夠恢復到正常水平。謝謝。

Any additional questions?

還有其他問題嗎？

NH Investment Securities, (inaudible)

NH投資證券（聽不清楚）

Hello. BHP and CMRB in China have been in a conflict recently. And from a steelmaker's viewpoint, is this a positive or a negative?

你好。必和必拓和中國中鐵集團最近發生了一些衝突。從鋼鐵生產商的角度來看，這究竟是好事還是壞事？

I'm in charge of [Raw Materials-I] Office. CMRG is a Chinese state-owned trading company. And so their influence in the steel making industry is limited, but gradually, they are increasing their volume traded. In 2010, the Benchmark system collapsed, and three top steelmakers dominated the market. Since then, for the first time, steelmakers have regained their bargaining power.

我負責[原料-I]辦公室。CMRG是一家中國國有貿易公司。因此，它們在鋼鐵製造業的影響力有限，但它們的交易量正在逐步增加。2010年，基準體系崩潰，三大鋼鐵製造商主導了市場。自那以後，鋼鐵製造商首次重新獲得了議價能力。

So I think they can definitely serve as pumping water for this bargaining power. So from that perspective, I think they provide some leeway for us to be able to have some bargaining power. China has its own market where they can negotiate or exercise influence there. But perhaps we need to be able to ally with our government or maybe our alliance needs to be set up with Japan.

所以我認為它們絕對可以作為這種談判籌碼的來源。所以從這個角度來看，我認為他們給了我們一些迴旋餘地，讓我們能夠擁有一些談判籌碼。中國有自己的市場，他們可以在那裡進行談判或施加影響。但或許我們需要與政府結盟，或者我們需要與日本建立聯盟。

The conflict with BHP is -- has been covered in the news, but that impact on the market is not large. In fact, that conflict has led to spot volume which we can purchase from the market at a lower price. So this is from a purchasing perspective.

與必和必拓的衝突——雖然新聞有所報導，但對市場的影響並不大。事實上，這場衝突導致了現貨交易量的增加，我們可以以較低的價格從市場上購買現貨。這是從購買者的角度來看的。

Through iron ore investments, we are able to keep our self-sufficiency rate at about 50%, and so this is what helps our performance and helps us to hedge against market variability. Thank you.

透過對鐵礦石的投資，我們能夠將自給率保持在 50% 左右，這有助於我們的業績，並幫助我們對沖市場波動。謝謝。

Is there any more questions?

還有其他問題嗎？

There's no more questions. (Operator Instructions)

沒有其他問題了。（操作員指示）

I believe there are no further questions or comments, so I'd like to thank all the investors for joining us for the earnings call. This wraps up the 2025 Q3 results call. Thank you very much.

我想應該沒有其他問題或意見了，所以感謝各位投資人參加本次財報電話會議。2025年第三季業績電話會議到此結束。非常感謝。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄稿中的英文陳述是由現場通話中的口譯員翻譯的。本次活動的翻譯人員由活動贊助公司提供。