Hyundai Steel temporarily shuts down rebar plant on low demand
Steel beams are under production at Hyundai Steel's Incheon plant in Incheon in this undated photo. Courtesy of Hyundai Steel
Hyundai Steel, Korea's second-biggest steelmaker, said Tuesday it has temporarily shut down one of its three domestic steel reinforcement bar (rebar) plants due to low demand.
The rebar plant in Incheon, just west of Seoul, will be suspended for the entire month of April, a company spokesperson said, adding the other two plants remain operational.
The company expects the plant's one-month suspension will help ease an oversupply in the market where steelmakers suffer from declining product prices amid tougher competition.
"The company may consider partial operation of the plant even after the one-month period if the rebar market shows no sign of recovery," a company spokesperson said.
On March 14, Hyundai Steel entered an emergency management mode in response to growing challenges, including the recent imposition of steel tariffs by the Donald Trump administration and ongoing strife with unionized workers.
The company had temporarily suspended its cold-rolled steel facility in Dangjin, about 80 kilometers southwest of Seoul, from Feb. 24 to March 31 in the wake of a monthslong strike by its workers demanding pay hikes.
The union workers at the cold-rolled steel facility are again planning to stage a walkout on April 8, the spokesperson said.
The pickling line/tandem cold mill (PL/TCM) facility is a key part of the company's integrated steel mill in Dangjin.
On Tuesday, Hyundai Steel fell 1.6 percent to 24,600 won, far underperforming the broader Korea Stock Price Index (KOSPI)'s 1.62 percent gain. (Yonhap)