Chinese steel cuts raise hopes for Korean steelmakers
Korean steelmakers are cautiously hopeful that voluntary production cuts by about 45 Chinese mills could ease the oversupply and price pressure that have squeezed their margins, although the impact will depend on how deeply and consistently output is reduced. “Reducing inventories and cutting production is certainly welcome and positive for the Korean steel industry,” an industry official said.…
Korean steel producers are cautiously optimistic that Chinese mills cutting production by roughly 45% could help alleviate the oversupply and price pressure they face, though the effect will hinge on the extent and consistency of the reduction. "Limiting inventories and production cuts is definitely a positive development for Korea's steel sector," remarked an industry representative.
"A substantial cut of 200 million to 300 million tons from China would likely have a highly beneficial impact on steelmakers worldwide, including those in Korea."
The China Iron and Steel Association recently urged approximately 45 Chinese steel producers, which include major groups like China Baowu, Ansteel, HBIS, and Shougang, to align production and inventories with actual orders and profitability, rather than maintaining full production despite declining demand. This initiative arises as declining property and construction demand has left Chinese mills with excessive inventories and declining profitability.
In the first half of 2026, China's crude steel production decreased by 3% compared to the same period last year.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Chinese steel cuts raise hopes for Korean steelmakers koreatimes.co.kr
