Godo Steel Targets 20% Export Rate in 1H F2010

Godo Steel tries to increase the steel export when the domestic demand is expected to keep slow in medium term. The firm targets around 20% of export rate in first half of fiscal 2010 while the export was almost zero in fiscal 2009. The firm launches new export group in the month to expand the export.

The firm expects strong offshore demand could contribute to the profit depending on foreign exchange rate when international steel price increases for semi-finished steel and finished products. The firm eyes billet, concrete reinforcing steel bar, H-beam, shapes and structural round bar. The firm prepares to get certification of offshore steel standards including British and Korean standards.

The firm traditionally exports the products spot basis. However, the domestic demand will decrease due to lower population especially for construction applications. Asian steel demand already recovered from slump after Lehman shock and the demand shows strong growth in China and Vietnam. The firm decided to expand the export for next growth.

International rebar offer price is as high as US$ 700 per tonne and semi-finished steel price also increases. The firm tries to take chance in profitable offshore market by expanding the export.