Incheon: Hyundai Steel Co. announced Thursday that it will shut down its steel reinforcement bar (rebar) factory in Incheon, located west of Seoul, for the entire month of April as a response to sluggish demand. The company clarified that this closure is not for regular maintenance but rather a strategic production cut prompted by deteriorating market conditions. "We have made the decision to normalize the market even if we have to suffer immediate losses," the company stated.
According to Yonhap News Agency, Hyundai Steel, which ranks as South Korea's second-biggest steelmaker by sales, operates the Incheon facilities with an annual production capacity of approximately 1.5 million tons of rebar and 2 million tons of steel sections. The decision to halt rebar production is driven by the domestic steel industry's challenges, including waning demand and declining prices. Additionally, the global steel market is grappling with oversupply issues and U.S. tariffs.
In response to these challenges, Hyundai Steel previously announced an emergency management mode. This includes a 20 percent pay cut for all executives and the implementation of a voluntary retirement program for employees, as the company strives to navigate the current market difficulties.