[SMM Global Steel Company Special] POSCO Business Performance Report POSCO Holdings Inc. released its 2025 consolidated results, reporting revenue of 69.095 trillion won, operating profit of 1.827 trillion won, and net profit of 504 billion won. The details of the steel segment's 2025 performance are as follows. Data source: POSCO Annual Report POSCO (Standalone) Operating Performance Production and Sales Data source: POSCO Annual Report Earnings Overview ① 2025 revenue: 35.011 trillion won, down 2.545 trillion won YoY; ② 2025 operating profit: 1.78 trillion won, up 307 billion won YoY; ③ Operating profit margin: 5.1%, up 1.2% YoY. Performance Analysis On a full-year basis, although selling prices in 2025 declined compared to 2024, operating profit still rose as raw material and production costs fell by a larger margin. ① Carbon steel selling price dropped from 985,000 won/mt in 2024 to 926,000 won/mt in 2025, down approximately 59,000 won/mt. ② Key raw material cost index: fell from 100 in 2024 to 83.8 in 2025, down 16.2. Although annual growth was still achieved, it is worth noting that the sharp rise in LNG prices also significantly impacted costs, pushing up energy and maintenance expenses from 494 won/m³ in 2024 to 633 won/m³ in 2025. More detailed changes are as follows (unit: 1 billion won). Data source: POSCO Annual Report Ex-China Steel Operating Performance Details Data source: POSCO Annual Report Core Steel Business Operating Activities Decarbonisation ① Commenced construction of the HyREX (hydrogen reduction ironmaking) demonstration plant in Pohang (expected to be operational in 2028). ② Operating the Gwangyang Electric Arc Furnace (EAF, capacity of 2.5 million mt, operational from June) to quickly respond to market demand for low-carbon steel products. Building Two Pillars: Energy and Mobility ① Pohang Plant (Energy): Building a "model plant for energy-use steel," deepening capabilities in steel for hydrogen energy, LNG, and power grid applications (including PosMAC, e-steel, etc.). ② Gwangyang Plant (Mobility): Positioned as a "dedicated plant for new mobility," conducting R&D on Giga Steel, silicon steel (Hyper NO), and other low-carbon high-end materials. Cost Innovation 2030 Leveraging technology to reduce structural costs through technology-driven structural cost reduction, targeting fixed cost reductions of 50 billion Korean won in 2025 and 40 billion Korean won in 2026. Optimizing group-wide operating costs: such as optimizing power generation and waste heat recovery, and streamlining logistics and procurement. Overseas Expansion ① [US Louisiana: EAF Integrated Steel Mill] Total investment of $5.8 billion, with POSCO holding a 20% stake and a relatively small financial burden (capital-to-debt ratio of 50:50). Products will be directly supplied to North American automakers and POSCO's Mexico plant. Discussions are underway on battery materials supply chain and next-generation materials collaboration. ② [Strategic Partnership with US Cleveland-Cliffs] Combining POSCO's global network with Cleveland-Cliffs' domestic production assets. Goal: Capturing the North American high-value-added automotive sheet market through the integration of technology and marketing. ③ [India: Integrated Steel Mill Joint Venture] Establishing a 50:50 joint venture with JSW, India's largest steel manufacturer, with equal representation on the board of directors. Constructing an integrated steel mill with a capacity of 6 million mt, and conducting business collaboration in renewable energy (wind and solar) to supply power to the steel mill. Source: POSCO Annual Report Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. 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Novelis and Infinitum have renewed their aluminium recycling partnership, shifting focus from pilot projects to scale and supply stability. The collaboration will expand recycling systems to strengthen recycled aluminium supply and support low-carbon production. The move also aligns with Novelis’ “3x30” targets to raise recycled content to 75% and reduce emissions intensity to below 3 tonnes of CO2 per tonne by 2030. Amid supply chain volatility, scaling recycling helps secure feedstock, manage costs and advance decarbonisation goals.

The Aluminium Federation (ALFED) has urged the UK Government to take swift action on industrial electricity pricing, warning that current rates—about 50% higher than those in key European economies—are undermining the aluminium sector’s competitiveness and resilience. In a letter to Baroness Curran at the Department for Energy Security and Net Zero, ALFED stressed aluminium’s strategic role in defence, aerospace, and infrastructure. The submission calls for aligning UK power costs with European levels, exploring tools like ARENH-style contracts or gas caps, and developing a clear cross-departmental pricing reform roadmap. A unified industrial voice, ALFED says, is essential for long-term growth, job creation, and decarbonisation.

On June 7, the Hydrogen Energy and Low-Carbon Lanzhou Forum 2025 was held at Lanzhou University. Nearly 300 experts and scholars engaged in in-depth exchanges on scientific and technological innovation and industrial development across the entire green hydrogen energy chain, exploring the development prospects of energy transition, industrial decarbonisation, and high-end development. During the forum, the Hydrogen Energy and Low-Carbon Center at Lanzhou University was launched. At the forum, Lanzhou University signed cooperation agreements with 18 enterprises to jointly promote the construction of the Hydrogen Energy and Low-Carbon Center and industry-university-research collaboration. During the forum's reporting session, multiple experts delivered presentations on topics such as hydrogen energy and low-carbon development, energy transition, and energy security. In the guest forum session, several experts delivered keynote speeches. Professor Can Li chaired the first plenary session of the first Academic Committee of the Hydrogen Energy and Low-Carbon Center, where attending committee members provided suggestions and recommendations. Against the backdrop of the accelerated transformation of the global energy system and the in-depth promotion of carbon neutrality, green hydrogen energy, as a zero-carbon energy source, is increasingly becoming an important engine for reshaping the global energy landscape. The Hydrogen Energy and Low-Carbon Center at Lanzhou University is a substantive scientific research institution, jointly led by Professor Can Li, an academician of the Chinese Academy of Sciences, and Professor Yongping Yang, President of Lanzhou University. It implements a director responsibility system under the leadership of a management committee, conducting organized scientific research through goal-oriented and task-driven approaches. The center will be based in Gansu, addressing the development needs of large energy bases in the western region. It will leverage Lanzhou University's strengths in new energy and low-carbon research to create a high ground for hydrogen energy and low-carbon innovation and R&D with western characteristics. Through interdisciplinary collaboration in fields such as chemical physics, atmospheric environment, and energy and power, and in-depth cooperation with top-tier enterprises in the industry, Lanzhou University has established a full-chain innovation mechanism for industry-university-research-application integration, focusing on areas such as next-generation PV power generation, materials and equipment for water electrolysis hydrogen production, new-type energy storage technologies, solar fuel synthesis processes, and numerical weather prediction.

[South32 Secures ARENA Support for Clean Energy Transition in Alumina Refining] South32 has been awarded $4.4 million in funding from the Australian Renewable Energy Agency (ARENA) to explore clean energy alternatives for steam production at its Worsley Alumina Refinery in Western Australia. As part of an $8.72 million prefeasibility project, the study will investigate electric boilers and mechanical vapour recompression (MVR) as potential solutions to reduce the refinery’s reliance on fossil fuels. Alumina refining, which heavily depends on steam for the Bayer Process, is one of Australia’s most emission-intensive industrial activities. Steam production alone is responsible for around 70% of the sector’s greenhouse gas emissions. By shifting to electricity sourced from renewables, South32 hopes to significantly cut emissions at Worsley, supporting its broader targets of a 50% reduction by 2035 and net-zero emissions by 2050. This initiative is backed by ARENA’s $400 million Industrial Transformation Stream, which is helping heavy industries adopt cleaner technologies. Similar efforts are underway at Alcoa and Rio Tinto facilities, reflecting a sector-wide move toward decarbonisation.

[Aluminium Dunkerque inaugurates €13 million recycling furnace] On May 2025, Aluminium Dunkerque officially launched a €13 million melting furnace, known as Furnace 8, dedicated to aluminium recycling. The new unit will process 7,000 tonnes of aluminium scrap annually and deliver 20,000 tonnes of low-carbon metal, cutting CO₂ emissions per tonne of ingots by 10%. This equates to 25,000 tonnes of CO₂ and 96 GWh of electricity saved each year. The installation also created eight new jobs. Furnace 8 incorporates advanced technologies such as oxy-fuel burners and a closed-loop industrial water system, boosting environmental performance. With a capacity of 10 tonnes per hour, the furnace strengthens France’s domestic recycling capacity and supports industrial decarbonisation, especially in the automotive sector. Aluminium Dunkerque, France’s last major primary aluminium smelter, produces 300,000 tonnes of aluminium annually for use in automotive, defense, transport, and packaging industries.