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Dongkuk Steel. (Photo = Yonhap News Agency Archive Photo) |
[Alpha Biz= Kim Jisun] Dongkuk Steel to Halt Rebar Production and Shipments for 8 Days in Response to Construction Industry Slump
Dongkuk Steel has decided to halt rebar production and shipments at its plant for a total of 8 days, starting from January 24 to 31, in response to the prolonged downturn in the construction industry. This follows a similar decision by Hyundai Steel, which announced it would suspend operations at its Incheon and Pohang plants for 11 days. The steel industry is increasingly moving toward production cuts.
According to industry sources on Thursday, Dongkuk Steel informed its distributors and direct clients of the decision. The company has made this move due to a sharp decline in demand for rebar products caused by the domestic construction slump. The decision aims to avoid further price reductions in the market by curbing additional product output. The reduction in production is intended to help deplete excess inventory, prevent low-price sales, and lay the groundwork for medium- to long-term market stabilization.
Since the end of June last year, Dongkuk Steel had already been operating its rebar plant only at night, reducing its operating rate to 60-65% of the usual level. The company plans to continue cutting production further, reducing the rate to around 50% starting this year.
Meanwhile, Hyundai Steel, the largest rebar producer in South Korea, has also begun reducing production. The company has suspended operations at its Incheon 2 rebar plant from January 13 to 27 and at its Pohang rebar plant from January 22 to 31, aiming to reduce production by about 70,000 tons.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
