Hyundai Steel, South Korea’s second-largest steel producer, is set to indefinitely suspend operations at its second plant in Pohang, citing the slowdown in construction and intense price competition from Chinese steel imports. Although the company initially sought to mitigate these challenges by reducing operations and conducting maintenance, it ultimately found continued production at the plant unsustainable, according to sources.
On Nov. 13, industry insiders reported that Hyundai Steel had notified employees of the intended closure. Labor and management representatives are scheduled to meet on Nov. 14 to discuss the next steps. “While we are exploring the possibility of closing the plant, no final decision has been made,” a company official stated.
Hyundai Steel’s Pohang Plant 2, which handles both steelmaking and rolling, has an annual production capacity of approximately 700,000 tons—half the size of the Plant 1. The steel producer also operates other major facilities in Dangjin, Incheon, and Suncheon.
South Korean steelmakers are under mounting pressure amid a sluggish domestic economy and an influx of low-cost Chinese imports. Facing weakened domestic demand, particularly from China’s stagnant real estate market, Chinese steelmakers have sharply reduced export prices for products like steel plates.
In July, Hyundai Steel filed an anti-dumping complaint with the Korea Trade Commission against the import of low-priced steel plates from China. The company is reportedly weighing an additional complaint targeting Chinese hot-rolled steel sheets.
