South Korean steelmaker Hyundai Steel has suspended rebar production at its Incheon and Pohang plants until the end of this month due to weak demand. The domestic rebar market has been struggling, with total rebar sales in 2024 down by about 20 percent year on year, amounting to 7.03 million mt. Demand from the construction sector has also dropped, leading to a decrease in prices. Consequently, Hyundai’s rebar production this month is expected to drop by more than 30 percent.
The domestic rebar market is unlikely to recover in the short term given the sluggish construction sector, with domestic steelmakers expected to take stricter measures to stop their losses. Another domestic steelmaker, Dongkuk Steel, plans to further decrease its rebar production this year. In June 2024, the company had already reduced the capacity utilization rate of its Incheon plant to 60 percent, down from 87.3 percent in 2023.