[Click eStock] "Husteel, Exactly Aligned with Trump Policy"

Hana Securities analyzed on the 4th that Husteel "perfectly aligns with U.S. President Donald Trump's energy policy and the policy to encourage domestic factory construction." Husteel is a company that manufactures API (American Petroleum Institute certified) casing pipes and pipelines used for oil and gas field development drilling.

On the same day, Seongbong Park, a researcher at Hana Securities, stated, "With President Trump's energy policy (Drill, baby, drill) anticipating an expansion of fossil fuel development in the U.S., after he signed the executive order imposing a 25% tariff on steel, steel prices in the U.S., especially OCTG (casing pipes) prices, surged." He did not provide a target price, and the closing price on the previous trading day was 4,895 KRW.

The executive order is scheduled to take effect from the 4th (local time), but concerns over reduced imports have been preemptively reflected, causing U.S. OCTG steel pipe prices to rise by 30.6% compared to before the signing. Researcher Park noted, "Depending on the scale of the reduction in U.S. steel pipe imports in the future, further increases in domestic U.S. prices are possible," adding, "If a uniform 25% tariff on Canada and Mexico is finally confirmed, these countries may face an additional 25% tariff on top of the existing 25% steel tariff, resulting in a total tariff of 50%."

Recently, President Trump has also accelerated approvals for various pipeline constructions, including urging the Keystone Pipeline construction. Husteel is expanding its production range from small-diameter pipelines produced through existing electric resistance welded pipes (ERW) to large-diameter pipelines with this investment, increasing the possibility of expanding pipeline exports to the U.S.

Researcher Park said, "Husteel is currently constructing an API steel pipe factory in the U.S., mainly producing 72,000 tons of casing pipes, scheduled to be completed in the first half of this year. This factory will be exempt from U.S. import regulations," adding, "The U.S. factory site was purchased with expansion in mind from the construction stage, and it is known that an additional expansion of 180,000 tons is also under consideration."