South Korean steelmaker Hyundai Steel has suspended rebar production at its Incheon and Pohang plants until the end of this month, due to weak demand, according to media reports.
The domestic rebar market is reported to have been struggling for a while now. The total rebar sales in 2024 amounted to 7.03 million mt, down by about 20 percent year on year. Also, demand from the construction sector has dropped, leading to a decrease in prices. As a result, Hyundai’s rebar production this month is expected to drop by more than 30 percent.
The domestic rebar market is considered unlikely to recover in the short term given the sluggishness of the construction sector, with domestic steelmakers expected to take stricter measures to put a stop to their losses.
In the meantime, another domestic steelmaker Dongkuk Steel plans to further decrease its rebar production this year. As SteelOrbis reported previously, in June 2024 the company had already reduced the capacity utilization rate of its Incheon plant to 60 percent, from 87.3 percent in 2023.
