[Special Stock] Fine Besteel Expected to Benefit from LNG Carrier Orders... Inverted Steel Section Oligopoly

[Asia Economy Reporter Hyungsoo Park] The stock price of Fine Besteel, which produces steel sections for shipbuilding, is on the rise.

At 11:04 a.m. on the 3rd, Fine Besteel was trading at 2,505 KRW, up 8.21% from the previous day.

Earlier, on the 1st, the three major domestic shipbuilders?Daewoo Shipbuilding & Marine Engineering, Hyundai Heavy Industries, and Samsung Heavy Industries?signed an agreement with Qatar's national oil company to order more than 100 LNG carriers. The contract size amounts to approximately 23.6 trillion KRW.

Not only shipbuilding stocks but also shipbuilding equipment stocks surged simultaneously, drawing attention to Fine Besteel. Fine Besteel's steel section division's competitiveness lies in fast delivery and a diverse product lineup. Since most raw materials for the steel section division are sourced domestically rather than imported, it has the competitiveness to deliver at the time desired by customers.

Along with medium and small steel section products produced by Fine Besteel's affiliate, Dongil Steel, it holds the competitiveness to offer a one-stop purchase of various types of steel sections ranging from small to large sizes as requested by customers. The inverted steel section for shipbuilding is a high value-added steel section produced only by Hyundai Steel and Fine Besteel domestically. It is introduced as possessing technology comparable to that of large corporations.

According to the Korea Iron & Steel Association, the proportion of angle and channel steel sections among total steel section production is about 18%, and Fine Besteel's main product is shipbuilding angle steel sections. Calculating Fine Besteel's production share among angle steel production shows that as of the end of last year, it holds about a 16.73% market share in the angle steel market.

This content was produced with the assistance of AI translation services.