[Featured Stock] Nexteel Receives Request to Join US Alaska LNG Project... Seizes Quantum Jump Opportunity

Nexteel is showing strong performance. The stock price appears to be influenced by news that the second term administration of U.S. President Donald Trump has requested South Korea's participation in the Alaska liquefied natural gas (LNG) development project. The project involves constructing a gas pipeline approximately 1,300 km long running north to south through Alaska, as well as building infrastructure such as liquefaction terminals. Initial estimates suggest that more than $45 billion (about 64 trillion KRW) will be invested.

Nexteel manufactures API-certified (American Petroleum Institute) OCTG pipes and Line Pipes, exporting and selling them worldwide, including in the United States.

As of 2:37 PM on the 4th, Nexteel was trading at 14,230 KRW, up 3,030 KRW (27.05%) from the previous trading day.

The Alaska LNG development project is a special focus for President Trump’s second term administration. Since 2012, the Alaska state government and ExxonMobil have been advancing plans to transport natural gas from the Prudhoe Bay gas field on the northern coast of Alaska near the Arctic Ocean about 1,000 km via pipeline to the ice-free port of Nikiski near Anchorage, liquefy it, and supply it worldwide.

Howard Lutnick, Secretary of Commerce, and Emison Greer, USTR representative, who are currently visiting the U.S., made proposals to Minister An Deok-geun of the Ministry of Trade, Industry and Energy, who also expressed interest in the matter.

In 2017, Nexteel established the ‘Nexteel SAHA’ steel pipe factory on a 100,000-pyeong site in Houston, Texas. It produces 120,000 tons of steel pipes annually, mainly manufacturing 2 to 5-inch pipes for North American shale gas. Even if exports of domestically produced steel pipes are halted due to U.S. tariff pressures, Nexteel can substitute with production from its local U.S. factory.

Nexteel’s sales decreased by 10.8% last year compared to the previous year, affected by reduced demand for energy steel pipes in the North American region. However, expectations for performance improvement are growing based on President Trump’s energy policies and tariff impacts.

The raw material for the steel pipes produced by Nexteel is hot-rolled coil (HRC), using the highest quality domestic and international raw materials. By producing and selling top-quality steel pipes, Nexteel has built a strong name value and grown into a leading Korean steel pipe company. The company is striving to diversify its product portfolio aiming to become a global integrated steel pipe manufacturer. It has completed investment in large-diameter facilities capable of producing 26-inch diameter electric resistance welded (ERW) pipes, the largest in Asia.