Fine Besteel Enjoys Solid Gains as K-Shipbuilding Super Boom Continues

As domestic shipbuilders have virtually swept the global order market, Fine Besteel Co., Ltd., a specialized manufacturer of shipbuilding steel sections, is enjoying significant benefits.

Recently, HD Korea Shipbuilding & Offshore Engineering secured a major order worth 2.5354 trillion won for 22 container ships. This order is noteworthy as global shipping companies are shifting their orders to Korean shipyards due to the intensifying US-China conflict and the growing reluctance to purchase Chinese-built vessels.

With the US's regulatory stance toward China and the technological competitiveness of Korean shipbuilders working in tandem, the so-called 'K-shipbuilding' super boom is expected to continue.

In this environment, Fine Besteel, a company specializing in the production of shipbuilding steel sections, is a direct beneficiary. Shipbuilding steel sections are a key material for ensuring the structural stability and weight reduction of hulls, and in Korea, only Fine Besteel and Hyundai Steel produce them. Container ships require more steel than LNG or LPG carriers, earning them the nickname 'cash cow ships' in the steel industry.

Riding the wave of increased orders from shipbuilders, Fine Besteel has secured approximately 150% more orders compared to last year. In response, the company has expanded production and resumed new hiring, which had previously been suspended. The company stated, "We have emerged from a four-year steel industry slump and entered a clear phase of performance rebound."

Along with the increase in orders, the stabilization of raw material prices and the rise in product prices are expected to significantly improve profitability in 2025.

A Fine Besteel representative said, "While responding to demand from the shipbuilding industry, we are also pursuing product diversification in preparation for a future recovery in the construction sector. We plan to enhance our competitiveness by focusing on our core steel business and to strengthen our financial soundness by securing funds through increased production and the sale of non-core subsidiaries and real estate holdings."