High Corrosion Resistant Steel Sheets Market Trends and Business Strategies of Steel Mills

by Sang-Kyu Lee, Kyung-Hee Jung

Publisher - POSCO Research Institute, Seoul, Korea

Category - General Novel

Corrosion resistance is one of the main concerns of such steel-consuming sectors as the construction and automotive industries. So far, galvanized steel sheets have mostly been considered as durable materials in severe environments. However, as the criteria for anti-corrosion materials have become more critical, zinc-aluminum alloyed coated steel sheets such as Zn-55%Al have begun rapidly replacing conventional products owing to the advantage of corrosion resistance in the field of construction materials. Most zinc-aluminum-magnesium alloyed products currently being developed are also expanding the range of the market. Asia-Pacific is the most promising market of Zn-55%Al alloyed coated steel products. Annual production in this region amounted to 2.9 million tons in 2003, which accounted for about 55% of world production. In line with the optimistic market outlook, some steel mills are expanding or even installing new production lines, although this market is becoming ever more fiercely competitive. This paper will consider market trends in high corrosion resistant steel sheets such as Zn-Al and Zn-Al-Mg alloyed coated steel sheets. Based on a technology adoption life cycle model, the replacement of those products will then be analyzed. Moreover, the business strategies of steel makers intended to cope with the market environment in advance will be shown.

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