South Korea’s leading steelmakers have decided to temporarily halt rebar production amid a prolonged slowdown in the local construction industry. The decline in demand has prompted manufacturers to curtail operations and reorganize production plans.
Dongkuk Steel announced that it will halt rebar production and shipments from January 24 to 31. The company gradually reduced production levels last year and cut its rebar factory capacity by 50% in December. According to industry sources, Dongkuk is expected to maintain its low production levels amid signs of recovery in the construction industry.
Hyundai Steel has also taken a similar step. The company’s rebar production facilities in Incheon will remain idle from January 13 to 27, while its plant in Pohang will suspend operations from January 22 to 31. Company representatives stated that the sharp decline in demand prompted them to scale back operations, especially ahead of the Lunar New Year holidays. Hyundai Steel had previously reduced its production by lowering capacity utilization rates and is reportedly considering further cuts in February, depending on market conditions.
Meanwhile, the steel industry is also grappling with global challenges such as oversupply from China. POSCO Group CEO and Korea Iron & Steel Association Chairman Chang In-hwa highlighted the ongoing crisis in the sector during the association’s New Year meeting, held for the first time in five years.
Industry Minister Ahn Duk-geun urged steelmakers to diversify their markets by creating demand in new sectors such as electric vehicles and renewable energy, reducing reliance on construction and traditional manufacturing industries. The minister also stated that the government plans to unveil a comprehensive strategy to revitalize the steel industry in the first half of this year.
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