Incheon: Hyundai Steel Co., Republic of Korea’s second-biggest steelmaker, announced on Tuesday that it has temporarily shut down one of its three domestic steel reinforcement bar (rebar) plants due to low demand. The rebar plant located in Incheon, just west of Seoul, will be suspended for the entire month of April. A company spokesperson clarified that the other two plants remain operational.

According to Lao News Agency, the suspension is aimed at alleviating an oversupply in the market, which has been a significant issue for steelmakers facing declining product prices amid increased competition. This move follows Hyundai Steel’s entrance into an emergency management mode on March 14, prompted by several challenges, including new steel tariffs imposed by the Donald Trump administration and ongoing disputes with unionized workers.

Previously, Hyundai Steel had temporarily halted operations at its cold-rolled steel facility in Dangjin, approximately 80 kilometers southwest of Seoul, from February 24 to March 31. This decision was made following a prolonged strike by workers demanding pay hikes. The union workers at the cold-rolled steel facility are now planning another walkout on April 8, the spokesperson added.

The pickling line/tandem cold mill (PL/TCM) facility is a vital component of Hyundai Steel’s integrated steel mill in Dangjin. As of 10:40 a.m., Hyundai Steel’s shares had fallen 1.4 percent to 24,650 won, significantly underperforming the broader Korea Stock Price Index (KOSPI), which saw a 0.89 percent gain.