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According to Mysteel, Hyundai Steel, the second largest steel manufacturer in South Korea, is considering closing its SG345WP Grade C steel Pohang 2 plant due to sluggish demand in the downstream construction industry and the continuous surge in imported resources due to price advantages. Earlier this year, the company underwent a six-month major overhaul of its equipment at its Incheon factory and its steel plant in Tangjin, Chungcheongnam do, is also undergoing maintenance, hoping to address the challenge by reducing production. However, these measures are not enough to alleviate the SG345WP Grade C steel situation. According to sales data, the company's third quarter sales were 5.6243 trillion Korean won, with operating profit of only 51.5 billion Korean won, a decrease of 10.5% and 77.4% respectively from the same period last year; The net loss also reached 16.2 billion Korean won. It is reported that on November 13th, Hyundai Steel has notified employees of its plan to close the factory, and the management and worker representatives are scheduled to hold a meeting on November 14th to discuss the next steps.
As early as July, Hyundai Steel had filed an anti-dumping lawsuit with the Korea Trade Commission, applying for SG345WP Grade C steel anti-dumping duties on imported resources of hot-rolled steel plates. In October, the Korea Trade Commission of the Ministry of Trade, Industry and Energy of South Korea officially announced the initiation of an anti-dumping investigation into Chinese hot-rolled or alloy medium thick plates (Korean tariff codes 7208.51.1000, 7208.51.9000, 7208.52.1000, 7208.52.9000, 7225.40.9010, 7225.40.9091, 7225.40.9099). The current South Korean steel industry is facing the challenge of supply-demand imbalance. Due to the sluggish demand in the construction industry and the surge in imported resources, the market share is squeezed. Not only Hyundai Steel, but also several other South Korean steel mills, have their operating rates only maintained at 50% to 60%. The market is expected to recover from the Soviet Union by 2025 or early 2026.
