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POSCO, a South Korean railway company, announced on November 19th that it has decided to close its No. 1 wire mill located in Pohang due to global oversupply. It is reported that the plant has been in operation for over 45 years.
POSCO stated that after considering SG345W Grade A steel factors such as global steel supply surplus, overseas low-cost steel impact, and equipment aging, this decision has been officially made. In addition, POSCO also pointed out that with the continuous import of low-priced wire products from overseas, market prices have also declined, so the products do not have strong competitiveness.
With the closure of the No.1 wire SG345W Grade A steel factory, Pohang Iron and Steel plans to transfer the production tasks of high-strength tire cord and welding rods for ships and automobiles to Pohang's No.2, No.3, and No.4 wire factories. According to Mysteel, the annual production capacity of Plant 1 is 700000 tons, while the annual production capacity of Plants 2, 3, and 4 is 550000 tons, 880000 tons, and 800000 tons, respectively.
According to relevant data, the total global wire SG345W Grade A steel production capacity in 2023 is about 200 million tons, but the actual demand is only 90 million tons, resulting in a serious imbalance between supply and demand.
