SeAH Steel Corporation

SeAH Steel's selection as a key supplier for Korea's largest offshore wind project, the Shinan Ui Offshore Wind Power Project, is expected to boost Q2 operating profit by more than 35% year-over-year. Analysts highlight that the company's track record in overseas offshore wind projects gives it a competitive edge in securing further domestic contracts.

While offshore wind and LNG-related steel pipe demand provide near-term uplift, the broader steel sector continues to face structural headwinds from a domestic construction slump and chronic Chinese overcapacity, which could limit the durability and breadth of any earnings recovery driven by a single project segment.

Korean steel stocks, including SeAH Steel-related entities, are trading at PBR levels well below the global steelmaker average of 0.9x and the broader market average of 1.8x. Foreign investors have shown renewed interest, net-buying SeAH Besteel Holdings, signaling growing confidence that the sector is at a valuation trough with meaningful upside.

The depressed PBR of 0.39x for the KRX Steel Index reflects deep structural concerns — persistent Chinese low-cost exports, a prolonged domestic construction downturn, and chronically low ROE. SeAH Steel's stock has declined in July alongside peers, and technical analysis signals a strong sell, suggesting valuation alone may not catalyze a sustained re-rating.

Analysts at Daishin Securities project iron ore prices will fall to $90–100 per ton in H2 2026, down from $111 in May, and coking coal to $180–210 from $220–240 in H1. SeAH Steel also holds hot-rolled steel stockpiles acquired before price increases, providing an additional near-term cost cushion that could meaningfully expand profitability.

Raw material costs have already spiked in H1 2026, and any further volatility in iron ore or coking coal prices could erode the anticipated margin recovery. The global steel pipes market, while growing at a 4.3% CAGR, remains highly competitive, leaving limited pricing power to offset unexpected cost increases in the near term.