Hyundai Steel rebar production capacity cut reshapes South Korea’s steel market

Hyundai Steel rebar production capacity faces structural cuts in Incheon

Hyundai Steel rebar production capacity declined sharply after the company closed one Incheon rolling mill.
The shutdown removed a 750,000-ton rebar line and a 90-ton electric arc furnace.
Hyundai Steel reached a labor agreement on January 20 before confirming the closure.

However, the market already expected this decision after earlier production suspensions.
The Incheon rolling mill halted operations on January 4 amid weak construction demand.
Last April, Hyundai Steel also paused all Incheon output for nearly one month.

As a result, Hyundai Steel rebar production capacity dropped across its national footprint.
Total capacity from Incheon, Pohang, and Dangjin now stands near 2.6 million tons annually.
Previously, those facilities produced about 3.35 million tons per year.

Oversupply pressures weigh on South Korea’s rebar market

South Korea’s rebar sector continues to struggle with persistent oversupply.
National rebar capacity totals about 12.3 million tons per year across all producers.
Meanwhile, domestic consumption reached only 7 million tons last year, including imports.

Major producers include Hyundai Steel, Korea Iron & Steel, and YK Steel.
Therefore, mills now face mounting pressure to align output with real demand.
Analysts expect further rationalization as margins remain under strain.

Hyundai Steel shifts production strategy toward efficiency

Hyundai Steel also reorganized operations at its remaining plants.
The company will focus Pohang exclusively on rebar manufacturing.
Meanwhile, Dangjin will handle specialized automotive rolled products.

In addition, Hyundai Steel continues to prepare for long-term transformation.
The company committed 170 billion won through 2032 for scrap security and low-carbon materials.
This investment supports cleaner steelmaking and future regulatory compliance.

SuperMetalPrice Commentary:

Hyundai Steel rebar production capacity cuts highlight a turning point for Korean steelmakers.
Government policy now encourages capacity discipline across oversupplied segments.
As a result, producers with efficient assets and green investments may gain advantage.
SuperMetalPrice expects consolidation to reshape pricing power and regional steel flows.