Hyundai Steel has begun permanent capacity reductions at its Incheon works in South Korea, idling a 90-tonne electric arc furnace (EAF) and a small section mill to eliminate 750,000 tonnes/year of rebar production. The cuts, which took effect on 2 March 2026, represent 47% of Incheon’s total rebar capacity and reflect the company’s shift away from low-margin long products toward high-value flat and automotive steel.

      Prior to the closure, Incheon’s rebar capacity stood at 1.55 million tonnes/year. With the shutdown, Hyundai Steel’s total national rebar capacity falls from 3.35 million tonnes to 2.60 million tonnes across its Incheon, Pohang, and Dangjin sites. The move follows a four-year collapse in South Korean domestic rebar demand, which has fallen from 11 million tonnes in 2021 to just 7.0–7.2 million tonnes in 2025—a decline of nearly 30%.

      “The construction market remains extremely weak, with low apartment sales, reduced infrastructure spending, and declining private investment,” a Hyundai Steel official told Steel Times. “Rebar margins have been negative for 18 consecutive months, and we can no longer sustain loss-making operations. This restructuring is essential to improve our overall profitability and focus on growth areas like automotive sheet, electrical steel, and green steel products.”

      The company has allocated 170 billion Korean won ($128 million) to restructure the Incheon site, including retraining programs for 320 workers affected by the closure. Most employees will be transferred to Hyundai Steel’s automotive steel operations in Dangjin, where the company is expanding high-grade cold-rolled and galvanized capacity to supply Hyundai Motor and Kia.

      South Korea’s long product sector has been in steady decline since 2022, with several other producers—including Dongkuk Steel and POSCO Specialty Steel—also announcing rebar and wire rod capacity cuts. Industry analysts forecast further rationalization in 2026–2027 as domestic construction activity remains subdued and export opportunities narrow due to rising global trade protection.