The domestic stock market broke free from the previous day's sharp decline shock, showing a strong rebound. Investor sentiment recovered so rapidly in the KOSPI market that a buy-side circuit breaker was triggered. Amid this market atmosphere, warmth spread throughout steel stocks, a cyclical industry, with many related stocks simultaneously rallying.

As of the morning session on the 9th, the most notable stock among steel shares was Hanil Iron & Steel. Hanil Iron & Steel recorded a price of 5,760 won, surging 9.30% compared to the previous trading day and demonstrating the strongest upward momentum. It was followed by Korea Special Steel (6.25%), Hyundai BNG Steel (6.03%), and Keystrom (6.02%), which all recorded growth in the 6% range.

Stocks with gains in the 5% and 4% ranges also followed in succession. Samhyun Steel rose by 5.03%, while Moonbae Steel (4.48%), Geumgang Steel (4.42%), DSR Steel (4.41%), Kyungnam Steel (4.03%), and KBI Dongyang Steel Pipe (4.02%) joined the upward trend. In addition, numerous other steel stocks, including Geumgang Industrial (3.88%), NI Steel (3.33%), Bukuk Steel (2.84%), and Dongkuk Industries (1.46%), joined the rally.

Background for Rebound: Inflow of Bargain Hunting and Expectations for Shipbuilding and AI Demand

The market analyzes that as investor sentiment—which had been excessively dampened by the global stock market plunge the previous day—calmed down, bargain hunting flowed into the steel sector. Steel is a representative cyclical industry closely tied to infrastructure, construction, shipbuilding, and the automotive industries.

In particular, expectations for a shipbuilding boom, such as the recent news of Samsung Heavy Industries winning a 3.6536 trillion won FLNG order, could lead to increased demand for steel materials like thick plates, thereby positively impacting investor sentiment for related steel stocks.

Furthermore, the expansion of global artificial intelligence (AI) infrastructure investment, increased data center construction, and expanded power grid investments are also cited as factors heightening expectations for increased steel demand. The growing expectations for AI infrastructure-related investments following the recent visit to South Korea by Nvidia CEO Jensen Huang are also contributing to the momentum of steel stocks.

Future Outlook for the Steel Sector

The securities industry views the U.S. interest rate policy and the pace of China's economic recovery as major variables that will determine the future direction of the steel sector. In particular, if China's steel demand recovers and the global manufacturing industry improves, expectations for earnings improvements in the steel sector are expected to grow even further. Domestic investors are closely monitoring future raw material prices, global economic trends, and changes in the shipbuilding and construction industries while reviewing their investment strategies.

[This article was written based on publicly available market data and official materials, and artificial intelligence (AI) was utilized in the process of drafting the article and organizing the information. The information provided in this article is intended for general informational purposes and does not constitute a recommendation to invest in any specific stock or financial product. Investing in the stock and financial markets carries the risk of principal loss, and all responsibility for investments lies with the investor. Please ensure you verify relevant disclosures and official materials before making investment decisions. This publication bears no legal or financial liability for the provided information.]