Hyundai Steel raises output up to 80 percent

On Wednesday, March 13, South Korea's second largest steelmaker, Hyundai Steel, said that domestic long steel market conditions have experienced a certain degree of improvement but have yet to bottom out as construction activities are still weak. Commenting on the outlook for the market, Mr KimSang-gyu, director of Hyundai Steel's management and planning department, stated, “The economic recession has brought a heavy blow to us. Although demand is recovering and stock has come back to the normal level it's still too early to say the market has experienced its worst time.” Mr KimSang-gyu added, “Our production has been resumed up to around 80 percent.” Hyundai's profitability has improved steadily after almost breaking even in January, as it has increased production and prices have also slightly recovered, Mr KimSang-gyu said. He also stated that Hyundai Steel will not postpone the utilization of its new furnace no matter how the economic background develops, saying that SBQ (special bar quality) late supply is still insufficient and that Hyundai Steel will push all its laid-up capacities into production, and will produce 3.5 million mt of steel through its new furnace. The Hyundai Steel official predicted that Asian steel producers may obtain a 50 percent drop in iron ore prices from Brazil. In this event, the iron ore price would come down to the 2005 level of $43/mt, he concluded.