National Institute of Technology and Standards Announces Expansion of H-Beam Standards
Hyundai Steel Sees Opportunity to Strengthen Market Position
Construction Industry Concerns Over Increased Costs
[Asia Economy Reporter Hwang Yoon-joo] The steel and construction industries are experiencing mixed feelings over the National Institute of Technology and Standards' move to expand the standard specifications for H-beams (H-shaped steel). Hyundai Steel, the only domestic producer of large-size beams, sees this as an opportunity to strengthen its market position, but the construction industry expresses concerns that costs may increase and pricing power could weaken.
According to the steel industry on the 3rd, the National Institute of Technology and Standards announced a preliminary notice after holding a committee meeting to expand the standard specifications (KS) for 'H-beams.' They plan to accept objections from industry and stakeholders until September 5. After collecting opinions, the final decision on whether to expand the specifications will be made by the Technical Review Committee following a public hearing.
H-beams are bar-shaped steel products mainly used in building structures along with rebar. H-beams are essential in large steel structures such as factories, large buildings, and bridges.
The discussion on expanding H-beam specifications was sparked by Hyundai Steel. Currently, 82 types of products have KS certification, including general structural rolled steel (KS D 3503), welded structural rolled steel (KS D 3515), and H-shaped steel piles (KS F 4603). Hyundai Steel argues that KS-certified products should be expanded to reduce waste at construction sites and improve design suitability.
There are cases where large products are needed on site, but since few large product groups have KS certification, imported or non-certified products, or unnecessarily large H-beams must be used, leading to inefficiencies in cost and design. Hyundai Steel is requesting certification for about 30 products, mainly large H-beams.
However, the construction industry worries that this could only strengthen Hyundai Steel's monopoly position in the H-beam market. According to the Korea Iron & Steel Association, last year’s H-beam consumption was 2.719 million tons. The electric furnace-produced H-beam market is divided between Hyundai Steel and Dongkuk Steel, with Hyundai Steel holding a 50% market share as the top company. Dongkuk Steel holds about 35%, and imports account for 15%. Small H-beams cost 720,000 to 750,000 KRW per ton, but large products are more expensive. Hyundai Steel is the sole producer of large products, giving steelmakers pricing power. This is why the construction industry is wary of the H-beam specification expansion.
A construction industry official said, "Design offices may share interests with steelmakers, but contractors have to stock certified large H-beams, which actually increases costs," adding, "Hyundai Steel, as the sole producer of large H-beams, could strengthen its pricing power."
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