Incheon: Hyundai Steel Co., South Korea's second-biggest steelmaker, announced the temporary closure of one of its three domestic steel reinforcement bar (rebar) plants due to low demand. The plant in Incheon, located just west of Seoul, will remain suspended throughout April. Despite this shutdown, the company's other two rebar plants continue to operate as usual.
According to Yonhap News Agency, the company anticipates that the one-month suspension of the Incheon plant will help address an oversupply issue in the market, where steelmakers are grappling with declining product prices and increased competition. On March 14, Hyundai Steel initiated an emergency management mode in response to growing challenges, including the imposition of steel tariffs by the Donald Trump administration and ongoing labor disputes with unionized workers.
Previously, Hyundai Steel had temporarily halted operations at its cold-rolled steel facility in Dangjin, approximately 80 kilometers southwest of Seoul, from February 24 to March 31. This action was taken amidst a prolonged strike by workers demanding pay increases. The unionized workers at the Dangjin facility are planning another walkout on April 8, as reported by the company's spokesperson.
The pickling line/tandem cold mill (PL/TCM) facility is an essential component of Hyundai Steel's integrated steel mill in Dangjin. Meanwhile, Hyundai Steel's shares have experienced a decline; as of 10:40 a.m., they fell 1.4 percent to 24,650 won, underperforming the broader Korea Stock Price Index (KOSPI), which saw a 0.89 percent increase.