[Alpha Biz= Kim Jisun] Korean steelmakers are wrapping up the year by halting rebar production early as weak construction demand continues to weigh on the market. With inventories piling up and prices falling sharply, producers see little incentive to maintain output.
According to industry sources on December 25, Dongkuk Steel’s Incheon plant suspended rebar production from December 22 through year-end. The plant, which accounts for about 40% of the company’s total sales, is the country’s largest single rebar production facility, producing roughly 2.2 million tons annually out of Korea’s total 13 million tons.
Dongkuk Steel had already suspended operations for about a month starting in late July to ease oversupply, but sluggish market conditions have prompted another shutdown. The company also plans to continue restricting shipments of SD400-grade rebar for general distribution until prices stabilize.
Hyundai Steel’s Incheon plant has likewise ended domestic rebar production for the year and is currently producing only for export. Domestic supply will be limited to its Dangjin plant. Hyundai Steel also plans to maintain shipment restrictions on SD400-grade rebar until market conditions improve, with the possibility of extending the measures into January.
Other steelmakers, including Korea Steel, YK Steel, and Hankook Steel, have also reduced or suspended rebar production toward year-end, reflecting continued weakness in the construction sector.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
