Posted on 17 Jan 2025
Hyundai Steel, South Korea's second-largest steel producer after POSCO, announced on Thursday that it will temporarily halt operations of its steel bar (rebar), steelmaking, and rolling lines at Pohang Plant 1 from May 22 to 31, according to media reports.
Additionally, Hyundai Steel's Incheon Plant 2 will cease operations from May 13 to 27. These measures are a response to a sustained downturn in the construction sector, which has resulted in a sharp drop in rebar demand and ongoing price declines.
Notably, the smaller Incheon facility has already been inactive since September 9, 2024. In January alone, the company's rebar production is projected to shrink by over 30% compared to the same month last year, due to the closures at its three plants in Pohang, Dangjin, and Incheon.
"The rebar market is unlikely to recover quickly this year due to the ongoing weakness in the construction sector," an industry source remarked, adding that rebar producers are expected to enforce more stringent production cuts to curb the price drop and alleviate cost pressures stemming from high exchange rates and rising electricity costs, particularly with inventories already at excessive levels.
The Seoul-based steelmaker is anticipated to reduce rebar output by approximately 70,000 tonnes this month, according to a company official.
Source:Mysteel Global
