[Click eStock] "SW Steel Tech Benefits from Increased Deck Plate Demand"

ResearchAlum forecasted on the 19th that the performance of SW Steel Tech is expected to improve as the demand for deck plates increases due to changes in the industrial environment.

Researcher Lee Seung-hwan of ResearchAlum explained, "The demand for deck plates will increase due to labor law revisions and rising construction costs," adding, "Deck plates can be expected to reduce construction costs by cutting required manpower, shorten construction periods, and decrease safety accidents."

He continued, "Since 2020, construction costs have been rising rapidly," and "construction companies are adopting deck plate construction methods to reduce costs."

He analyzed, "With the rise in raw material prices, the price of deck plates is also increasing," and "there is a lead time of about 6 to 18 months from the construction contract to the actual construction," adding, "the final construction is carried out at the unit price initially set at the time of contract." Furthermore, he explained, "The rise in raw material prices, including iron ore, from the second half of 2019 continued sharply until 2021," and "deck plate companies suffered significant losses in 2020 and 2021."

The researcher emphasized, "Since 2022, the previously high raw material prices have been belatedly reflected in deck plate prices, benefiting the industry," and "due to the increased application rate of deck plates and rising sales prices, deck plate companies are recording record-high sales and operating profits."