Hyundai Steel Incheon Rebar Output Reduction: Battling Construction Slump

Demand is cratering while supply remains high. Hyundai Steel, South Korea's second-largest steelmaker, announced on January 20, 2026, that it'll slash production by 50% at one of its domestic facilities. According to Yonhap, the company's Incheon plant will permanently shut down one of its two production lines due to a massive rebar glut.

Reasons for Hyundai Steel Incheon Rebar Output Reduction

The decision reflects the harsh reality of the current construction industry downturn. The Incheon plant, which has an annual capacity of 1.6 million tons, has seen its inventory pile up as orders dried out. While Hyundai Steel emphasized that there won't be any layoffs, workers from the shuttered line will be reassigned following talks with the labor union. The company's other two rebar plants will continue their operations for now.

Industry data shows that domestic rebar demand totaled only 7 million tons last year, whereas local steelmakers' total production capacity sat at 12.3 million tons. This massive oversupply has made restructuring inevitable. Even the government flagged the rebar sector as a priority for industrial advancement in its Nov. 4 report, calling for immediate capacity adjustments to stabilize the market.