[Special Stock] Steel Stocks, Shipbuilders' Big Success in Qatar Boosts Price Increase Expectations

[Image source=Yonhap News]

[Asia Economy Reporter Koo Eun-mo] Steel stocks such as POSCO and Hyundai Steel are showing strength. As the three major domestic shipbuilders signed slot contracts for more than 100 vessels with Qatar Petroleum (QP), a Qatar state-owned company, expectations of price increases for shipbuilding steel plates are believed to be influencing steel stock prices.

As of 2:12 PM on the 3rd, POSCO was trading at 205,000 KRW, up 8.47% (16,000 KRW) from the previous trading day. At the same time, Hyundai Steel was also surging, trading at 25,600 KRW, up 15.84% (3,500 KRW) from the previous day.

According to the steel industry, steelmakers such as POSCO and Hyundai Steel and shipbuilders are currently negotiating shipbuilding steel plate prices for the second quarter of this year. The steel industry states that while iron ore prices are rising, shipbuilding steel plate prices have effectively fallen compared to last year, making a price increase inevitable.

Meanwhile, Qatar Petroleum (QP), the Qatar state-owned oil company, announced on the 1st that it had signed a contract for liquefied natural gas (LNG) carriers worth 70 billion riyals (approximately 23.6 trillion KRW) with Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Industries, and Samsung Heavy Industries. QP will receive more than 100 vessels from the three Korean shipbuilders by 2027.