Hyundai Steel, Dongkuk Steel raise rebar prices

South Korea's two largest rebar producers, Hyundai Steel and Dongkuk Steel, have raised their May closing prices for rebar to KRW 780,000/tonne ($565/t), up KRW 30,000/t from the previous month.

The move signals a concerted effort by the companies to stabilise the struggling domestic rebar market and safeguard profit margins amid weakening demand, Kallanish notes. The closing price system, intended to pre-empt market discounts and curb undercutting, as low-price orders and inventory dumping have been dragging the market down.

Hyundai Steel, which had temporarily halted operations at its Incheon rebar plant last month, has restarted the facility in May.

However, the company noted it could again suspend operations or adjust production volumes depending on market conditions.

Dongkuk Steel has been operating under a production cutback strategy since early this year, scaling down output and shifting to a night-time shift model. Its factory utilisation rate has recently been lowered to 50%, a level the company intends to maintain in the near term.

These measures come as domestic rebar demand is expected to fall sharply. With prices dipping below breakeven in some cases, both steelmakers are aiming to normalise the market by curbing oversupply and lifting prices to sustainable levels.

Looking ahead to the second quarter, the companies are hoping that the seasonal uptick in construction activity and easing political uncertainty will support a gradual recovery in market sentiment.

Source:Kallanish