Why is POSCO stock rallying today?

POSCO stock experienced a significant rally, rising 3.7% to trade at KRW 283,500, following the company's announcement of impressive third-quarter 2026 financial results. The steel business emerged as the primary driver of the improvement, with operating profit soaring 48% year-on-year despite previously facing challenges. Revenue for the quarter increased by 10.9%, reaching KRW19.14 trillion, while operating profit surged nearly 50% to KRW945 billion.

The lithium plant completed in Argentina, capable of producing 50,000 tons annually, and the acquisition of Chord's Marcellus shale gas assets for $550 million, equivalent to 1 million tons of LNG, were highlighted as additional growth catalysts. A broader market recovery also contributed to the positive sentiment, with Seoul stocks rebounding over 2% higher for the day, bringing the KOSPI index to close at 5,859.08, a 2.24% increase.

The company had pre-announced its earnings briefing, which covered steel, battery materials, and infrastructure divisions, and the stock had been steadily climbing in anticipation of the presentation. The results appear to have reinvigorated investor confidence in the group's multi-quarter recovery trajectory, despite the stock still trading near its 52-week low of KRW 268,000.