[Click eStock] "Koryo Steel, Increased Sales of Special Ropes for Offshore Plants"

Research Alume predicted on the 4th that if Korea Steel starts drilling operations for the 'Daewang Whale' project by the end of this year, sales of special ropes will increase.

Founded in 1945, Korea Steel is a manufacturer of special wire rods. It produces wire ropes and wire rods. Wire ropes are high-strength products with excellent durability, suitable for special environments such as offshore platforms for oil and gas drilling, offshore wind power, and infrastructure. Wire rods are used in automotive suspension springs, tire reinforcements, and more.

Researcher Choi Seonghwan from Research Alume explained, "When drilling operations for the Daewang Whale project begin, sales of special ropes for offshore plant drilling will increase," adding, "Korea Steel supplies 14,000 tons of wire ropes annually for drilling purposes." He continued, "Recently, due to an oversupply of raw materials caused by decreased steel demand in China, the price of high-carbon steel is falling," but added, "on the other hand, wire rope prices continue to rise."

He analyzed that "Korea Steel's price-to-book ratio (PBR) is around 0.3 times," and "to enhance shareholder value, the company is considering expanding dividends and a bonus issue plan." He also noted, "To secure new growth engines, investments are being expanded in the subsidiary KAT, which produces superconducting wire rods, a core component of nuclear fusion power," emphasizing, "From 2009 to 2016, it supplied 137 tons of Nb3Sn superconducting wire rods to the International Thermonuclear Experimental Reactor (ITER) project."

Researcher Choi said, "As the use of artificial intelligence (AI) expands recently, countries are increasingly concerned about meeting the surging power demand," and "global market interest in nuclear fusion power is rapidly growing, and research demand for KAT's superconducting wire rods is also increasing."