Daehan Steel is experiencing a surge of over 13% during trading, driven by expectations of benefits from South Korean investments in the U.S. Alaska liquefied natural gas (LNG) development project.
As of 3:05 PM on October 14, Daehan Steel shares were trading at 9,940 won, up 1,150 won (13.08%) from the previous trading day, according to the Korea Exchange.
There is also increased buying interest in the broader steel sector. At the same time, TCC Steel (up 8.35%), Nexteel (up 4.07%), and Hysteel (up 1.98%) are also showing gains. This reflects expectations that the Alaska LNG project will boost demand for steel pipes and materials needed for pipeline and export terminal construction.
Earlier, KT Jaecker-Ryer, the new White House spokesperson, mentioned during her first official briefing on October 13 (local time) that South Korea plans to invest $54 billion (approximately 72.5 trillion won) in the Alaska LNG development project. This amount is expected to be allocated for the construction of the Alaska LNG pipeline and terminal.
The Alaska LNG project is a major energy development initiative that involves transporting natural gas via long-distance pipelines, liquefying it, and exporting it. If the project moves forward, it could create more opportunities for domestic steel companies to supply the necessary steel pipes and materials for construction.
However, the South Korean government has stated that it has not yet made a decision regarding the investment. As the commercial viability of the Alaska LNG development project is still under review, the scale of benefits for related steel companies may vary depending on the actual investment and project progression.
* This article has been translated by AI.
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