1. Welding Performance: Carbon Equivalent (CEV) and Preheat Requirements
Chinese CCS EH36/FH40 typically has higher CEV, increasing welding complexity.
CEV Comparison:
Baowu EH36: CEV ~0.38–0.42 (due to higher C/Mn content).
POSCO EH36: CEV ~0.34–0.38 (leaner chemistry with microalloying).
Preheat Impact:
Chinese EH36 often requires 100–125°C preheat (vs. 75–100°C for Korean EH36).
Case Study: COSCO reports 10–15% longer welding times for Baowu EH36 vs. POSCO.
Crack Sensitivity:
Higher Pcm (cracking index) in Chinese steels (0.22–0.25 vs. 0.18–0.21 for JFE).
Result: More hydrogen-induced cracking (HIC) risks, demanding stricter electrode controls.
2. Price Competitiveness: Cost Advantages with Trade-offs
Chinese CCS steels are 15–25% cheaper but face export barriers.
Price Comparison (FOB, 2024):
Baowu CCS EH36: $600–650/ton.
POSCO ABS EH36: $750–800/ton.
JFE DNV EH36: $800–850/ton.
Cost Drivers:
Lower Ni/Cr alloying in Chinese steels reduces material costs.
Chinese domestic subsidies (e.g., tax breaks for state-owned mills).
Trade Barriers:
EU anti-dumping duties (25%) negate price advantages in Europe.
Dual certification (CCS+ABS) adds $50–100/ton for exports.
Market Reality: BRI and domestic Chinese ships prioritize Baowu/Ansteel; global fleets prefer POSCO/JFE.
3. Weld Consumables and Fabrication Efficiency
Chinese steels demand specialized electrodes, raising fabrication costs.
Consumable Compatibility:
Baowu EH36 often requires AWS E81T1-Ni2 (vs. standard E71T-1 for POSCO).
Cost Impact: Ni-based wires are 20–30% pricier.
Automated Welding Suitability:
Korean EH36 performs better in robotized FCAW due to lower spatter.
Chinese mills are improving TMCP consistency to reduce weld defects.
Shipyard Feedback:
Samsung Heavy Industries reports 5–8% higher NDT failure rates with CCS FH40 vs. POSCO.
Solution: Some Chinese yards pre-test plates with matched filler metals.
4. International Certification and Quality Perception
ABS/DNV approvals for Chinese EH36/FH40 lag behind Japanese/Korean steels.
Certification Hurdles:
Baowu's ABS EH36 requires extra impact tests (-40°C transverse).
DNV GL rarely certifies Ansteel FH40 for LNG carriers without supplemental data.
Quality Reputation:
POSCO's "Zero Defect" EH36 is preferred for critical zones (e.g., hatch coamings).
Chinese mills improve, but skepticism persists in EU/US markets.
Case Example:
Maersk's newbuilds use dual-sourced EH36 (POSCO hull + Baowu bulkheads).
Trend: Baowu invests in AI-based quality control to match JFE's reliability.
5. Future Outlook: Upgrades and Green Steel Race
Chinese mills are closing the gap via R&D and sustainability initiatives.
TMCP Advancements:
Baowu's new EH36 batch achieves CEV 0.36 (closer to POSCO's 0.34).
Target: Reduce preheat to 80°C by 2025.
Green Steel Push:
Baowu's hydrogen-based DRI EH36 (1.8t CO₂/ton) competes with POSCO's Hyundai EAF routes.
CCS plans low-carbon steel notation to align with EU ETS.
Export Strategies:
Dual-certified (CCS+ABS) EH36 for Southeast Asian shipbuilders.
Price undercutting in Africa/Latin America.
