South Korea: POSCO, Hyundai mills in maintenance mode, HR supplies may be hit
South Korea: POSCO, Hyundai mills in maintenance mode, HR supplies may be hit...
Concerns over supply of domestic hot-rolled (HR) products are likely to increase in Q4 as POSCO and Hyundai Steel are scheduled to go for maintenance of facilities from October. In addition, imports of HR products from China are expected to decrease significantly from November, according to SteelDaily.
Repair and maintenance details
1. POSCO is undergoing major repairs for 14 days from 11-25 Oct'21 at the Gwangyang second hot-rolling mill, which has an annual production capacity of 5.1 million tonnes (mn t).
2. POSCO plans to carry out major repairs from 18 Oct-1 Nov'21 at the Pohang 1 hot-rolling mill, which has an annual production capacity of 3.6 mn t.
3. POSCO's hot rolling plant will carry out heavy repairs for six days from 22-27 Nov'21 at Gwangyang's third hot-rolling mill, which has an annual capacity of 5.2 mn t.
4. Also, Hyundai Steel plans to carry out repair work for 10 days from 18-27 Oct'21 at the second hot-rolling mill of Dangjin Steelworks, which has an annual production capacity of 5.5 mn t.
Concern over supply disruptions
Downstream companies are planning to take measures to ensure that there is no disruption in product supplies during the facility repair period by using their hot-rolled stockpiles, taking into account the repair schedules POSCO and Hyundai Steel. Furthermore, Hyundai Steel is facing , illegal occupation at its Dangjin Works Control Centre, which can further dent production and shipment.
In addition, key Chinese hot-rolled exporters, Bongye Steel and Rijo Steel, stopped their official offers for November shipments owing to the Chinese government's production cuts and export restrictions.
There is uncertainty over domestic production and shipment of hot-rolled products in Q4 due to the repair schedules of the two key mills , along with worries over a decline in exports from China.