Trump’s Alaska LNG Remark Sends Korean Steel Stocks Surging; Shin Steel Hits Daily Limit

Hopes Rise for Gains From US LNG Project

Shin Steel Closes at Daily Limit; Kumkang Steel Jumps 17.68%

South Korean steel and steel pipe shares rallied after President Donald Trump again mentioned South Korea in connection with the Alaska liquefied natural gas project.

Shin Steel, a steel sheet processor and distributor, ended Sept. 3 at the daily upper limit of 2,105 won. Dongil Steel Lux closed 13.36% higher at 1,451 won after rising as much as the daily limit during the session. Kumkang Steel gained 17.68%, KBI Dongyang Steel Pipe rose 8.26%, and TCC Steel climbed 7.83%.

The move followed Trump’s remarks at the White House on Sept. 2, when he said he would visit Alaska to support Republican Senator Dan Sullivan’s re-election campaign. “You have Japan and South Korea,” Trump said. “All of these people are going to Alaska to load fuel and oil, build pipelines and do everything else.”

The Alaska LNG project is one of Trump’s core policy priorities. It centers on building a roughly 1,300-kilometer gas pipeline to transport natural gas produced on Alaska’s North Slope to Nikiski, an ice-free port near Anchorage. The gas would then be liquefied and shipped to end markets.

The Trump administration has repeatedly raised the possibility of South Korean and Japanese investment in the project. If it moves forward, the pipeline spanning Alaska would require sizable volumes of steel pipe. South Korea and Japan have not officially confirmed investment in the Alaska LNG project. Because the latest gains were driven by expectations rather than signed contracts, the shares may remain volatile.

Lee Sun-a, Hankyung reporter suna@hankyung.com