Korean steel stocks rallied broadly after U.S. President Donald Trump again referred to South Korean investment in Alaska's liquefied natural gas development project. Expectations are spreading across related shares that demand for steel products, including steel pipes, could rise if large-scale gas field development, pipelines and terminal construction materialize.
Daehan Steel traded at 10,280 won as of 1:31 p.m. on the 14th, up 16.95% from the previous session, according to the Korea Exchange. TCC Steel rose 9.64% to 14,440 won, while Hi Steel gained 7.32% to 3,520 won. Nexteel (5.11%), Keumkang Steel (5.00%) and KBI Dongyang Steel Pipe (4.64%) also advanced. Among large caps, Hyundai Steel rose 3.07% to 28,550 won and POSCO Holdings gained 2.93% to 307,750 won.
The rally was sparked by Trump's remarks on Alaska LNG. Speaking at a campaign rally in Alaska on the 13th, Trump raised the LNG development project and said South Korea had already pledged $50 billion in investment in Alaska, equivalent to about 72 trillion won. The same day, new White House press secretary Katie Zachariah said in her first official briefing that South Korea would invest $54 billion in the Alaska LNG project.
The Alaska LNG project is a large-scale development that includes gas production facilities, a pipeline running about 1,300 kilometers, and liquefaction and export terminals. The market has focused on expectations that demand for steel products such as steel pipes and heavy plates could increase once the project enters an actual investment phase. That is seen as the reason buying flowed into pipe makers including Hi Steel, Nexteel and KBI Dongyang Steel Pipe.
Whether South Korea will actually invest has yet to be confirmed. The Korean government maintains that it has begun reviewing the commercial viability of the Alaska LNG project and that no investment decision has been made. Given the gap between the Trump administration's statements and Seoul's explanation, analysts said the day's share gains reflected expectations running ahead of any actual orders.
