Seoul: Hyundai Steel Co., South Korea's second-biggest steelmaker, announced on Tuesday the temporary closure of one of its three domestic rebar plants due to low demand. This plant, located in Incheon, just west of Seoul, will remain closed for the entire month of April, according to a company spokesperson. Despite the shutdown, the other two rebar facilities will continue their operations.
According to Yonhap News Agency, Hyundai Steel anticipates that the one-month suspension at the Incheon plant will help mitigate the oversupply issues facing the market. The steel industry is currently grappling with declining product prices and increased competition. A company representative indicated that if the rebar market does not show signs of recovery, there is a possibility of considering a partial reopening of the plant even after the initial one-month shutdown.
Earlier, on March 14, Hyundai Steel entered an emergency management mode to address various challenges, such as the recent steel tariffs imposed by the Donald Trump administration and ongoing disputes with unionized workers. The company had previously halted operations at its cold-rolled steel facility in Dangjin, around 80 kilometers southwest of Seoul, from February 24 to March 31 due to a prolonged strike by workers demanding salary increases.
Furthermore, union workers at the Dangjin facility are planning another walkout on April 8, as confirmed by the company spokesperson. The pickling line/tandem cold mill (PL/TCM) facility is a crucial component of Hyundai Steel's integrated steel mill in Dangjin.
On the stock market front, Hyundai Steel's shares fell by 1.6 percent to 24,600 won on Tuesday, underperforming compared to the broader Korea Stock Price Index (KOSPI), which registered a 1.62 percent gain.