Korean steel maker,
) recently announced the completion of the construction of a
stainless cold-rolled plant, the first of its kind in the Izmit
Industrial Complex in Turkey.
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The plant, POSCO ASSAN TST, will have annual production capacity
of 200,000 tons of steel and besides distribution within the
country, will open the gates to several growing markets including
the European, Middle East, Russia, CIS, and North Africa regions
POSCO's presence in Turkey will prove vital for its growth due
primarily to absence of any other steel producing facility in the
region and presence of many well-renowned automobile companies
including Renault, Fiat, Ford, Nissan, and Honda as well as major
home appliance companies in Europe.
Prospects are bright for the steel industry as concerns related
to the Eurozone crisis and instability in the U.S. and China are
abating gradually. This in turn has increased demand for better
infrastructure and modernized farming techniques. According to
the World Steel Association's projection in Apr 2013, estimated
global consumption of steel is likely to grow 2.9% in 2013 and
3.2% in 2014.
The Zacks Consensus Estimate for 2013 and 2014 are at US$8.35 per
ADR and $9.36 per ADR, representing a year-over-year growth of
17.8% and 12.1%, respectively.
POSCO currently has a market capitalization of $5.8 billion and
is the world's third largest steelmaker on the basis of output.
The stock currently carries a Zacks Rank #3 (Hold).
Other stocks to watch out for in the industry are
Nippon Steel & Sumitomo Metal Corporation
), with a Zacks Rank #1 (Strong Buy) while
Angang Steel Company Limited
), each have a Zacks Rank #2 (Buy).