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
"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."