South Korean steelmakers POSCO and Hyundai Steel have suspended their overseas operations due to the coronavirus. The suspension is related to reduced demand, especially coming from the downstream industries such as shipbuilding and automobiles.
Accordingly, POSCO will stop operating its stainless steel plant in Verona, Italy, with an annual production capacity of 40,000 mt, from March 26 to April 3. Additionally, its four processing centers in India, the Philippines and Malaysia will also be shut down.
On the other hand, Hyundai Steel has also suspended operations as it mainly supplies steel products to Hyundai Motor and Kia Motors which are idled for the time being, while the company’s steel plate processing line in Alabama, US and coil and steel pipe manufacturing plants in India will also halt operations. The plants in the Czech Republic and Slovakia will be operated by essential personnel only in line with the plant shutdown schedules of Hyundai Motor and Kia.
South Korean steelmakers expect to make up for the gap in production by increasing their capacity utilization rates in the second half of the year, SteelOrbis understands, though sluggish demand remains a big issue.