Trump's Alaska LNG Comment Sends South Korean Steel Stocks Soaring

South Korean steel and steel pipe stocks surged on September 3 after President Donald Trump mentioned the Alaska LNG project in connection with South Korea. The gains were driven by buying tied to expectations for investment in the project, which points to continued volatility.

Shin Steel hit its daily upper limit of 2,105 won, while Kumkang Steel jumped 17.68%. Other steel-related shares also rallied, including Dongil Steel Lux and TCC Steel. The move followed Trump's remarks at the White House on September 2, when he said that Japan and South Korea would be involved in the project.

The Alaska LNG project is a key policy priority for the Trump administration, which centers on building a roughly 1,300-kilometer gas pipeline to transport natural gas from Alaska's North Slope to Nikiski. If it moves forward, the pipeline would require significant volumes of steel pipe, potentially drawing in South Korean and Japanese investment.

However, the gains were driven by expectations rather than signed contracts, which may keep shares volatile. The Korea Economic Daily notes that neither South Korea nor Japan has officially confirmed their involvement in the project.