South Korean Steel Stocks Trade at Record Low 0.39x PBR as AI Infrastructure Demand Signals Recovery

According to KRX data as of July 14, South Korea's steel stocks are trading at a PBR of 0.39x, the lowest among 17 KRX sector indices. POSCO Holdings (005490) trades at 0.42x, Hyundai Steel (004020) at 0.18x, and Seah Besteel (001430) at 0.56x, all significantly below the global steel sector average of 0.9x and market average of 1.8x.

The depressed valuations reflect China's overcapacity, domestic construction weakness, and low ROE. However, analyst expectations are improving as export volumes surge—U.S. steel rod exports reached 484,000 tons in the first half of 2026, up 33-fold year-over-year—while raw material costs stabilize. Analysts forecast iron ore prices will decline to 90–100 USD/ton in the second half from May peaks of 111 USD/ton, and Australian coking coal to 180–210 USD/ton from first-half levels of 220–240 USD/ton, supported by expanding AI data center construction and semiconductor facility investments.