[Special Stock] Munbae Steel Surpasses 1 Million Won for Hot Rolled Steel Sheets at Record High... The Second Semiconductor Shortage

[Asia Economy Reporter Park Hyungsoo] Small and medium-sized steel stocks are showing strength. The global steel demand is increasing, and the supply shortage is expected to continue for some time, which seems to be influencing stock prices. POSCO Gangpan, Dongkuk Steel, and KG Dongbu Steel are also collectively rising.

As of 10:52 AM on the 27th, Munbae Steel is trading at 5,500 KRW, up 11.79% from the previous day.

Samhyun Steel is also recording a rise of over 16%.

POSCO stated in its Q1 earnings conference call, "While global steel demand is increasing, supply is not keeping up," adding, "Negotiations for June deliveries are in the final stages according to international prices."

They continued, "Steel supply shortages in the US and Europe are causing international market prices to surge," and "Hot-rolled steel sheet prices are reaching record highs."

Hot-rolled steel, which is steel processed into thin sheets from molten iron, currently has a distribution price exceeding 1 million KRW. This is the first time since records began in 2008.

The domestic steel market is supplied by major companies such as POSCO, Hyundai Steel, and Dongkuk Steel, which sell directly to large domestic consumers. For small and medium-sized consumers such as SMEs, products are supplied through sales agencies of major companies. POSCO's hot-rolled sales agencies traditionally hold market dominance in hot-rolled products. Competition within the market has intensified as the latecomer Hyundai Steel entered the steel market. Munbae Steel is aiming to improve productivity through facility automation to reduce cost burdens and is pursuing continuous product quality development and expansion of sales networks.

Munbae Steel was first selected as an official designated sales agency of POSCO in July 1975 when POSCO formally established its sales agency system. It has steadily grown for over 50 years to date.