South Korea: Steel production, sales to halt on approaching holidays

South Korea's steel production and exports will remain stalled on account of the approaching Korean New Year holidays. Moreover, some of the major mills have planned to go on maintenance, which, in turn, will raise concerns over supply and demand during the period. Inventory levels with mills are expected to remain low at around 200,000 tonnes (t).

Seven major domestic rebar producers, including Hyundai Steel, Dongkuk Steel, Daehan Steel, Korea Steel, Hwanwan Steel, YK Steel and Hankuk Steel, all have plans to suspend production and overseas supplies during the Korean New Year celebrations.

"In winter, inventories increased slightly, but considering the Lunar New Year holidays and major maintenance schedules, the speed of inventory depletion is expected to accelerate," said an industry insider.

"If this leads to an increase in demand, supply is highly likely to remain tight in Feb'22," added the source.

Note: This insight has been published in accordance with an article exchange agreement between SteelMint and SteelDaily.