U.S. President Donald Trump’s mention of South Korea and Japan in connection with the Alaska liquefied natural gas (LNG) project has sparked a rally in domestic steel stocks.
As of 9:35 a.m. (Korean time) on Thursday, the Korea Exchange reported that Shin Steel was trading at 2,105 KRW (about 1.55 USD), up 484 KRW (about 0.36 USD) (29.86%) from the previous day’s close.
Other steel companies also saw significant gains, with Kumgang Steel up 23.57%, TCC Steel rising 17.88%, Dongil Steelux increasing 16.33%, and Bookook Steel climbing 10.05%.
Market analysts suggest that Trump’s repeated references to South Korea and Japan’s involvement in the Alaska LNG project have fueled expectations that domestic steel and pipe manufacturers could participate in the construction of the massive pipeline system.
During a White House briefing on Wednesday, while discussing his upcoming visit to Alaska, President Trump stated that Japan, Korea, and all these countries are now coming to Alaska to transport fuel and oil and build pipelines.
The Alaska LNG project aims to transport natural gas from northern Alaska to Nikiski in the south, where it will be liquefied for export to Asian markets and beyond. This ambitious plan requires the construction of an approximately 1,300 km (about 808 miles) gas pipeline stretching across Alaska from north to south.
It’s worth noting, however, that neither South Korea nor Japan has officially committed to investing in the Alaska LNG project at this time.