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 manufacturers are cautiously optimistic that voluntary production cuts by roughly 45 Chinese mills could help alleviate the oversupply and price pressures that have been squeezing their profit margins. However, the actual impact will hinge on the extent and consistency of the output reduction. "Cutting inventories and production is certainly a welcome development for the Korean steel industry," remarked an industry official.
"If China were to implement a significant reduction of 200 million or 300 million tons, I believe it would have a very positive effect on steel producers worldwide, including those in Korea."
The China Iron and Steel Association (CISA) recently urged approximately 45 steel manufacturers, including prominent firms like China Baowu Group, Ansteel Group, HBIS Group, and Shougang Group, to modify production levels and inventories based on actual orders and profitability. This move follows a period of weak demand in property and construction, which has left Chinese mills with excessive inventories and declining profitability.
In the first half of 2026, China's crude steel production declined by 3 percent compared to the previous 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.
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- Chinese steel cuts raise hopes for Korean steelmakers koreatimes.co.kr
