HOUSTON Posco Ltd. is
increasingly focusing on higher-value oil and gas markets as
challenges in the commodity-grade steel market continue to
"In the (commodity) steel
market, its getting hard. Thats why we are focusing
on oil and gas. The steel for oil and gas is getting a high(er)
price because of the quality," Bo-hyun Kim, manager of
Poscos oil and gas business department, told AMM
on the sidelines of the Offshore Technology Conference (OTC) in
Although Posco is very much a
global player, the domestic steel market is playing a major
role in the companys current strategy, Kim said. Posco
set up an office in Houston two years ago to take advantage of
growing demand for energy products due to increased shale
exploration in the U.S. market.
"America is one of our biggest
markets because shale gas is a big feature in (this) market,"
The energy industry has become
Poscos largest end market, Kim added, noting that the
company has been able to differentiate itself with both its
quality and its research and development offerings.
"(Our) biggest market was
shipbuilding and automobile, but now ... offshore and the oil
and gas industry is our biggest market," she said. "The oil and
gas materials need high quality ... due to the severe
environment, so our technology and our research and development
capabilities can contribute to the industry."
Pohang, South Korea-based Posco supplies pipe and tube
makers with flat-rolled carbon, titanium and stainless
substrate. It has also diversified into engineered products for
drillers, while its specialty metals division makes stainless