Hyundai Steel has no plans to cut production

Hyundai Steel Co. does not plan to further cut production, despite weak demand for steel due to the coronavirus pandemic, its chief said.

Earlier this year, South Korea's second largest steelmaker revised annual production of hot rolled products from its electric arc furnace to 700,000 tonnes from the previous 1 million tonnes.

Hyundai Steel operates three blast furnaces and an electric arc furnace, also known as a mini-mill, at its steel complex in Tangjin, about 120 kilometers south of Seoul.

Hyundai Steel Co. in Dangjin, about 120 kilometers south of Seoul (Yonghap)

Hyundai Steel CEO An Tong-il told reporters that the company will not shut down the blast furnace to reduce production. He said he expects a turning point after the third quarter of this year.

In the three months ended March 31, Hyundai Steel posted a net loss of 88.6 billion won (US $ 72 million), up from a net profit of 94.4 trillion won a year earlier.