The stock price of POSCO Engineering & Construction Co., Ltd. is strong in the early trading hours on the 10th. It is interpreted as a surge in buying interest following news of a large supply contract with the largest shareholder, POSCO.
As of 9:30 a.m. that day, POSCO Engineering & Construction is trading at 14,550 won, up 1,730 won (13.49%) from the previous trading day.
After the market closed the previous day, POSCO Engineering & Construction announced that it signed a packaging outsourcing contract for POSCO's Pohang and Gwangyang steel mills.
The contract amount is 173.24 billion won, which accounts for 50.7% of POSCO Engineering & Construction's 2023 revenue. The contract period is until July 1 of this year.
A spokesperson for POSCO Engineering & Construction noted, "This supply contract covers services related to the packaging of steel products, supply of packaging materials, and maintenance of packaging equipment," adding that "the contract amount may change based on fluctuations in total volume."