Workers’ strike at Hyundai Steel over a month has halted the production of hot strips at the Dangjin Works steel mill of Hyundai in South Korea, which induced to export pilling up stocks of slabs.
The labor union has a few demands; one of them is the 15% profit share of the mill is to disburse to the laborers on a performance base. The strike started in late September and has hiked the slab inventories. Hyundai Steel is considering exporting semi-finished products, i.e., slabs.
Korea exported 80,800 tons of slab from January to August, a decline of 60% against the same period in 2021. Dangjin Works has the facility to produce slabs 250 mm thick and 800 to 1,650 mm wide.
Although production and business activities continue in blast furnaces and steel shops, strike prevents consumption at hot-rolling facilities. The export of semi-finished products will significantly impact the Korean steel industry as steel maker produces steel products specifically for ships and automobiles. Exports will create a shortage of semi-finished products in the Korean industry. On the other hand, it will boost slab exports.
Leave a Reply