Danieli among Piazza Affari's best after Hyundai's jumbo order

 (Il Sole 24 Ore Radiocor) - Danieli Ord is snapping up the stock market and boasting one of the best performances in the markets, after announcing that it has been awarded a mega-order of $650 million. On Wednesday, 7 January, the company announced that it had been selected by Hyundai as 'technological partner' for the construction of a new green steel plant in the US state of Louisiana. The value of the contract is approximately $650 million and includes the supply of a direct reduction plant, two electric smelter furnaces and related secondary metallurgy, two slab casters for high thicknesses, and two slab reheating furnaces. Danieli also emphasised that the foundations have also been laid for future cooperation in the global steel market.

Analysts at Equita commented that the news is positive for the company, representing one of the largest orders ever acquired by the group. "It is worth about 16% of our estimate of expected orders for 2026 for the plant-making division," they explained, pointing out that the high technological content of the plant "leads us to estimate an above-average marginality". Among other things, Hyundai's decision highlights that restrictive trade policies in the steel sector are favouring the re-shoring of production. In short, "Hyundai's decision to invest in the United States is also aimed at mitigating the risk linked to the Trump administration's protectionist measures", explained Equita's experts, thus taking into account more business opportunities for Danieli thanks to the strengthening of the relationship with Hyundai, the leading steel producer in South Korea and 21st worldwide, with a production of 18 million tonnes in 2024. Equita's rating on Danieli's shares is 'Buy', although the calculated price target is lower than the stock market price, i.e. at 53 euro for ordinary shares and 37.7 euro for savings shares.