“Quietly, the metal inside is melting at about 1,700 degrees. To maximize durability, it is melted in a vacuum to prevent impurities from mixing.”

On the afternoon of the 20th, in front of the alloy melting equipment VIM (Vacuum Induction Melting) at SeAH Changwon Integrated Special Steel's special steel plant. It was hot enough to feel like one's face might burn, but there was almost no noise, which was explained to the puzzled reporter. Unlike blast furnaces or electric furnaces that create molten metal in the air and produce loud noises, the metal is melted by induction heating in a vacuum state with a cover.

The special alloys produced in this way withstand extreme temperatures of several hundred degrees and extreme pressures and are used in parts for fighter jets and aircraft. Facing a crisis due to the low-cost offensive of Chinese steel, domestic steel companies, including SeAH, are focusing on developing 'specialty' steel in such niche markets.

● Masterfully removing metal impurities like making bone broth

Although the steel industry is the backbone of manufacturing, often called the 'rice of industry,' Korean steel is currently facing an extreme situation. High tariff bombs continue, and it is impossible to compete with China, which pushes with low prices in general-purpose steel. According to the World Steel Association, China's crude steel production last year was about 1.05 billion tons, accounting for 53% of the world's production (1.8862 billion tons).

Amid this, SeAH Changwon Integrated Special Steel has delved into special alloys for aerospace. This is a representative field where quality is prioritized over price. The process is similar to filtering out foam and residue until completing 'bone broth.' The metal that has undergone the first melting process, VIM, is melted once more in a vacuum. This is done in the refining equipment, VAR (Vacuum Arc Remelting), which removes impurities and gases to the extreme. Afterward, the 'forging' process, which shapes the metal into the desired size and shape, follows. When a giant press machine hammers a red-hot metal mass with thousands of tons of pressure, the special alloy is completed.

Domestic steel companies, which have mainly produced hot-rolled and cold-rolled steel sheets, began to focus on specialty steel as they faced a crisis due to the prolonged slump in the construction industry and the low-cost offensive of Chinese steel. In particular, SeAH is the only domestic steel company to enter the aerospace material market. After the Russia-Ukraine war, global customers stopped using Russian special alloys, and SeAH seized the opportunity to start supplying in August 2022. Currently, it has customers in the United States, Germany, and Israel. It has secured technology for so-called 'super heat-resistant alloys' that withstand 1,650 degrees and is currently developing technology to withstand over 1,700 degrees. SeAH Changwon Integrated Special Steel plans to increase the proportion of its special alloy business, which accounted for 3% (KRW 43.1 billion) of sales as of the end of last year, to 20% by 2030.

● Steel companies finding a breakthrough with new technology and high-quality specialties against low-cost Chinese competition

In addition to SeAH, major domestic steel companies are focusing on developing their respective specialty steels. This is to find a breakthrough in fields with high profitability and entry barriers.

POSCO recently developed high manganese steel that withstands ―196 degrees. By adding a large amount of manganese to iron, it increased strength and durability. This targets the material market for storing and transporting liquefied natural gas (LNG) at extremely low temperatures. POSCO also decided to conduct joint research with HD Hyundai Heavy Industries to apply high manganese steel to warship hulls.

Hyundai Steel, an affiliate of Hyundai Motor Group, is focusing on ultra-high-strength steel sheets for automobiles. In June of this year, it began producing third-generation steel sheets for automobiles targeting the electric vehicle market at the Dangjin Steelworks. It is conducting tests with global automakers, including Hyundai Motor Group.

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