Posco forges ahead in steel technology despite global trade and environmental challenges

Posco continues to push forward with its steel innovations despite trade barriers, competition from low-cost imports and tightening environmental regulations.
 
Korea’s steel industry faces mounting challenges, including U.S. tariffs and an influx of cheaper foreign materials. Additionally, the European Union’s Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2026, will impose fees on imported steel based on carbon emissions, adding further pressure.
 
Amid these hurdles, Posco is making strides in the energy infrastructure sector with its advanced steel technology, particularly in liquefied natural gas (LNG) storage and transportation.
 
Posco is expanding its global value chain across production, shipping, storage, sales and construction. A prime example is the LNG Terminal project led by Posco International, which is the first in the world to use Posco’s cryogenic high manganese steel — a breakthrough material for LNG storage.
 
LNG infrastructure demands materials that can withstand extreme conditions, including cryogenic temperatures, abrasion resistance and high strength. Traditionally, LNG tanks have been made from alloys containing costly raw materials like nickel and aluminum. However, nickel’s limited global supply leads to price volatility and potential disruptions.
 

 
To address these issues, Posco began developing manganese alloy steel in 2008. While manganese enhances wear resistance and strength, it also makes steel brittle. Through controlled rolling and cooling technology, Posco successfully created high manganese steel with exceptional durability, even at temperatures as low as minus 196 degrees Celsius.  
 
Posco’s high manganese steel contains 22.5 to 25.5 percent manganese, offering superior strength and elongation — the ability to stretch without breaking — compared to conventional materials. It is also about 30 percent cheaper than 9 percent nickel steel, thanks to the abundance and affordability of manganese.
 
 

 

 
The material is now widely used in LNG storage and transport. It has been applied to Gwangyang LNG Terminal’s Tanks 5 and 6, owned by Posco International, and is also being used in the ongoing construction of Tanks 7 and 8. The inner tanks of these terminals, which directly store LNG at minus 163 degrees Celsius, rely on high manganese steel for safety and performance.
 
Beyond land-based storage, Posco has pioneered the use of high manganese steel in marine applications. In 2017, it was successfully incorporated into the fuel tank of “Green Iris,” the world’s first LNG-powered bulk carrier. Since 2022, after verifying its suitability for mass production, Posco supplied high manganese steel for LNG fuel tanks on Hanwha Ocean’s extra-large crude carrier.  
 
Posco’s chairman, Chang In-hwa, has played a key role in the company’s advancements. With a background in naval architecture, ocean engineering and steel research, Chang has been instrumental in positioning high manganese steel as a game-changer in the industry.
 
In 2017, while serving as vice president, he made the strategic decision to use Posco’s high manganese steel for Gwangyang LNG Terminal Tank 5. He also championed the adoption of high manganese steel in LNG-powered vessels. When Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, hesitated to use the material, he met with executives to explain its safety and advantages, ultimately securing its implementation.
 
Despite trade barriers and environmental pressures, Posco remains committed to strengthening its position in the global materials market. By focusing on steel technology innovation and maximizing group synergy, the company aims to secure long-term competitiveness and sustainability in an evolving industry. 

BY LEE YEBIN [[email protected]]