Measures to Address Supply-Demand Imbalance
Dangjin and Pohang Plants to Operate Normally
Hyundai Steel will implement a full shutdown of the entire rebar plant at its Incheon factory for the month of April. This is the first time since the company's founding that the entire production line of the rebar plant has been completely halted.
On the 27th, Hyundai Steel explained, "There has been an oversupply amid decreased demand for rebar," adding, "The production cut aims to resolve the supply-demand imbalance." Recently, despite shipment and production adjustment measures by major steelmakers, the rebar market has continued to experience price declines and low-price cutthroat competition due to insufficient demand. Hyundai Steel plans to stabilize the market and improve the accumulated deficit situation through the shutdown of the Incheon rebar plant.
However, Hyundai Steel will continue producing rebar without interruption at its Dangjin and Pohang plants. Including the Incheon plant, Hyundai Steel produces approximately 3.3 million tons of rebar annually at the Dangjin and Pohang plants. Among these, the Incheon plant's rebar capacity is known to be around 1.5 million tons per year.
Hyundai Steel will first halt production at the Incheon rebar plant for the month of April, then monitor market trends such as the reduction of domestic rebar inventory to decide whether to maintain the production cut. Industry insiders expect that Hyundai Steel’s one-month suspension of the rebar plant will help alleviate the oversupply in the short term.
Amid a global economic downturn, oversupply from China, and sluggish domestic demand, Hyundai Steel recently entered an emergency management system. The company is implementing cost-cutting measures such as reducing executive salaries by 20% and offering voluntary retirement to all employees. Since the previous day, voluntary retirement applications have been accepted from general, research, and technical staff aged 50 and above (born in 1975 or earlier).
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