To ensure the necessary expansion, Hyundai Steel Company is working to ensure that the demand for raw materials.
Recently the company reached with the Australian company Rio Tinto for 10 years supply agreement, from April 2009 to March 2019, glue stick Rio Tinto to provide more than 100 million tons annually of coking coal. Total more than 10 million tons of coking coal contract, worth more than 3.0 billion. In addition, the modern steel agree to start from next April every year within 5 years from the Wesfarmers purchase of 50 million tons of coking coal.glue gun This year February has 10 years with Rio Tinto iron ore supply agreement signed, the procurement of iron ore during this period totaled more than 40 million tons.
Two South Korean Hyundai Steel and Pohang Iron and Steel Company were to expand production capacity to meet orders from the automotive and shipbuilding sectors increased demand. Hyundai Steel plans to spend 5.24 trillion won (5.1 billion) to build two blast furnaces, to be completed by 2010 after the annual capacity of 800 tons. The company also plans further investment in 2015, 2.3 trillion won No. 3 blast furnace was built. The company is currently using the EAF, the annual capacity of 11 million tons. Expansion of modern steel hope to be the world after the 6th largest steel manufacturer.
South Korean steel manufacturer POSCO, another large for more than the world's second largest steel manufacturer Nippon Steel, the current expansion is in progress, expected 2011 crude steel production from 31 million tons in 2007 to 4,000 million tons, an increase of 29 %.
Because coking coal demand and reduced supply caused by floods in Australia, the price of coking coal this year, up 2 times to 300 U.S. dollars / ton. Analysts said the agreement with Rio Tinto modern iron and steel market has been to eliminate the demand for raw materials the company's expansion concerns.
Rio Tinto recently said that by 2015 coal production will double the annual production of coking coal may be 620 million tonnes from last year to 15.2 million tons, to meet growing demand.