South Korea-based steelmaker POSCO (NYSE:PKX) is known for its wide range of products, such as hot and cold rolled steel and stainless steel. With an increasing demand for steel across several sectors with the fast-reopening global economy, we think the company is well positioned to benefit, So, the stock has the potential to deliver solid returns in the near-term. Read on.POSCO (PKX) has come a long way from being the first integrated steel mill in South Korea to a global business with production and sales in 53 countries worldwide. The company is no stranger to controversies. In March 2021, some of its employees in India protested over job opportunities and hiring practices, which led to fears of a production halt among investors. However, that issue was resolved quickly. Also, the company said on April 16 that it will end its joint venture with Myanmar Economic Holdings Public Co Ltd following pressure from activist groups to end ties with entities in Myanmar linked to the military.
Nevertheless, PKX reported impressive financials in the first quarter, ended March 31, 2021. The stock has gained 25.5% over the past six months and 7.6% over the past three months to close yesterday’s trading session at $77.26.
First Quantum Minerals Ltd. (OTC:FQVLF) said on May 19 that it has agreed to sell a 30% stake in its Ravensthorpe nickel mine in Western Australia to PKX, and that the companies have agreed to evaluate a strategic partnership to produce battery precursor materials from production at the mine. Furthermore, PKX is expected to continue to gain in the coming months given the increasing demand for steel products across several industries, including construction, automotive and machinery, with the fast-paced reopening of the global economy.