Domestic shipbuilding stock prices continue to show strength. This is believed to be due to collaboration proposals from major countries like the United States and India.
Shares of HD Hyundai Heavy Industries were trading at 282,000 won on the KOSPI market at 9:20 a.m. on the 26th. The stock rose 3.68% (10,000 won) from the previous day. During the trading session, the price rose to 284,000 won, setting a new all-time high. HD Hyundai Heavy Industries has seen an upward trend for six consecutive trading days up to this date.
The so-called big three in shipbuilding, including Hanwha Ocean and Samsung Heavy Industries, are also showing upward trends in their stock prices. The stock prices of ship component and equipment corporations such as STX Engine, Hanwha Engine, HD Hyundai Marine Engine, Hyundai HIMS, and Oriental Precision also show strength.
It appears that the recent visit of Indian shipbuilding industry representatives to South Korea's big three shipyards to request cooperation has stimulated investor sentiment. India is reported to have proposed a transaction with South Korean shipbuilders to secure 1,000 new vessels.
Earlier, U.S. President-elect Donald Trump also emphasized cooperation, stating, "I am well aware of Korea's world-class naval and shipbuilding capabilities." This indicates that the technological prowess of South Korean shipbuilders is being increasingly recognized.
The increasing possibility of expanding liquefied natural gas (LNG) production centered in the United States is also a positive situation for the domestic shipbuilding industry. LNG carriers are representative high-value-added vessels, and South Korea is assessed to be leading in technology. While China is increasing its market share in LNG carrier vessels through a low-cost offensive, the consensus is that the probability of the U.S. requesting its own LNG shipping volumes from Chinese shipyards is low.