South Korean steelmakers are reducing rebar production capacity as the prolonged construction downturn weakens demand, while rising raw material and electricity costs continue to pressure profitability, according to the local media reports.
Hyundai Steel plans to close an electric arc furnace and small-bar rolling facilities at its Incheon plant, affecting around 800,000 tons per year of capacity. The move will reduce the company’s total rebar capacity from approximately 3.35 mln tons to 2.6 mln tons per year. The affected facilities had already been idle since January 4, 2026.
South Korea’s domestic rebar demand fell to around 7 mln tons in 2025, compared with national production capacity of approximately 12.3 mln tons. Dongkuk Steel Mill, which has annual rebar capacity of 2.57 mln tons, has also been considering adjustments to its facilities as demand weakens, although further closures remain uncertain.
The industry is nevertheless watching for a potential construction-market recovery in 2027. Increased government budget allocations for infrastructure and housing supply could support activity and improve rebar demand, although the timing and strength of any recovery remain uncertain.