Dongkuk Steel Mill decided to halt production at its Incheon plant to stabilize rebar supply as demand stagnation prolongs.
Dongkuk Steel Mill announced on the 26th that production at its Incheon plant's rolling mill and steelmaking plant will be suspended starting July 22. The planned date for resuming production is August 15. The reason given for the production halt is to resolve over-supply issues. This is the first time since its establishment that production at the Incheon plant has been stopped.
The Incheon plant is a key hub that accounts for about 40% of Dongkuk Steel Mill's annual sales. It has the capacity to produce 2.2 million tons of rebar per year, making it the largest domestic single plant. It is equipped with two electric arc furnaces and two rolling lines. This production suspension is expected to lead to a supply reduction of about 200,000 tons.
Last June, Dongkuk Steel Mill reduced plant operations to 60% due to 'nighttime restricted operations,' and at the beginning of this year, it reduced it further to 50%. Dongkuk Steel Mill plans to monitor market conditions in August and will consider extending the suspension period if over-supply issues do not improve.