[Exclusive] Hyundai Steel, Dongkuk Steel, and Daehan Steel Simultaneously Consider Rebar Capacity Expansion

Hyundai Steel to Increase Shinyehwa Rebar Production at Incheon Plant
YK Steel Relocates Factory to Dangjin, Boosting Capacity from 850,000t to 1,000,000t
Rebar Market Boom Spurs New Entrants
Existing Rebar Producers Consider Expansion to Maintain Market Share

[Asia Economy Reporter Hwang Yoon-joo] The top three domestic rebar market share holders?Hyundai Steel, Dongkuk Steel, and Daehan Steel?are all considering expanding their rebar production. This is due to the anticipated rebar market boom next year and intensified market share competition as new entrants like Hanguk Teukgang enter the market.

According to industry sources on the 15th, Hyundai Steel has formed a TFT to modernize the electric furnace at its Incheon plant and is reviewing rebar expansion plans. Hyundai Steel is the number one domestic rebar market share holder, currently with an annual production capacity of about 3.35 million tons.

Second-ranked Dongkuk Steel has also begun considering new rebar expansion, approaching the matter cautiously. If domestic steelmakers operate at full capacity, the rebar supply scale reaches 14 million tons, slightly exceeding domestic rebar demand (10 to 12 million tons). Daehan Steel, which acquired YK Steel, is reviewing rebar expansion while relocating the YK Steel plant from Busan to Dangjin. The industry expects YK Steel’s annual rebar production to increase from the current 850,000 tons to around 1 million tons.

Currently, the domestic rebar market is led by three companies: Hyundai Steel (1st place, 3.35 million tons), Dongkuk Steel (2nd place, 2.75 million tons), and Daehan Steel (3rd place, 2.4 million tons). As of last year, domestic rebar production was 9.47 million tons, with these three companies producing 93% of the total. The reason all three are simultaneously expanding is due to the shifting dynamics of the rebar market.

Domestic rebar demand was around 8 to 9 million tons annually but rose to 10 million tons due to increased demand from the real estate market and other factors after COVID-19. Demand is expected to increase further next year compared to this year.

Meanwhile, the entry of new players into the rebar market appears to have had a significant impact. Hanguk Teukgang began constructing a new rolling line in February and will start producing 700,000 to 800,000 tons of rebar annually from April next year. Dongbu Steel is also reportedly interested in entering the rebar market. An industry insider said, "With two companies that previously did not engage in the rebar business aggressively entering the market, the three existing rebar suppliers have no choice but to expand production to maintain their market shares," adding, "The current phase of the rebar market has changed."