Bars and profiles are significant product groups used in construction materials, constituting approximately 80% of Dongkuk Steel's sales.
According to Dongkuk Steel's first-quarter performance report for 2024, the company's production of bar and steel profile dropped from 853 tons in the fourth quarter of last year to 686 tons in the first quarter of this year. Sales volume also decreased from 857 tons to 693 tons.
A Dongkuk Steel official stated, "Sales in our main area of focus, the bar and steel profile segment, declined due to the deteriorating construction economy." The official also noted that sales in the heavy plate segment decreased due to slowing demand and an influx of low-priced imported products.
The company is also reducing the operating hours of the electric furnace where bars and profiles are produced to ensure production flexibility. Dongkuk Steel stated, "In preparation for a prolonged economic crisis, we will manage production flexibly by reducing costs, working overnight, and shutting down at month-end."
However, industry experts predict that with no clear signs of recovery in the construction sector, the downturn is likely to continue affecting sales of bar and steel profile. Manufacturers like Dongkuk Steel are continuing to take measures to reduce costs and manage production flexibly.
As uncertainty persists in South Korea's construction sector, steel producers may continue to face similar challenges in the coming period.
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