NEW YORK Posco Ltd. is looking to innovate and offer solutions for customers in a global steel industry dogged by overcapacity, chairman and chief executive officer Chung Joonyang said in a keynote address at the Steel Success Strategies XXVIII conference in New York sponsored by AMM and Englewood Cliffs, N.J.-based World Steel Dynamics Inc.
"Were going to avoid simple price competition with other neighbors by providing a total solution to our customers, including financial support," Chung said on the subject of competition with China, which faces significant overcapacity issues.
The global steel industry has about 525 million tons of overcapacity, and steel consumption will grow just 1 to 2 percent annually over the next 10 years, Chung said. This means steelmakers must work to set themselves apart.
Posco is developing a number of products to differentiate itself from the competition, including high-manganese steel for the liquefied natural gas (LNG), heavy machinery and oil sands industry that can significantly cut costs compared with nickel-bearing grades, Chung said. The steelmaker also is looking to further the use of magnesium strip in the automotive industry to address the need for lightweighting.
The Pohang, South Korea-based company is targeting 50 percent raw material self-sufficiency in iron ore and coking coal going forward, Chung said, up from about 23 percent self-sufficiency in iron ore and 24 percent in coking coal in 2011.
Chung also called on steelmaking countries to "eliminate subsidies, trade barriers and protectionism" and to "create new steel demand and protect steel from other materials."