Nowadays, the construction and manufacturing industries of many countries have begun to pick up, and the demand for steel is increasing.
South Korea has also ushered in the peak season for construction sites. However, due to the severe shortage of steel bars, the main building materials, many construction projects have been postponed or suspended.
With the completion of a large number of residential buildings in recent years, public travel demand has increased. Starting from September 2018, Zhutian Station in Daegu City, South Korea has begun to expand and increase exports.
After the outbreak of the epidemic last year, South Korean construction demand shrank, and major steel companies reduced production. Entering this year, as the construction industry has recovered faster than expected, the demand for steel bars has surged. According to statistics, the current national steel rebar inventory in South Korea is only 80% of the same period last year.
At this juncture, a factory of Hyundai Steel, which accounts for more than 10% of the average daily supply of steel bars in South Korea, has ceased production on the 10th of this month due to an accident, which has further led to insufficient supply. It also rose by 80% during the year.
In the case of imbalance between supply and demand, many small and medium-sized construction companies in South Korea have launched a fierce "rebar grabbing war". In some areas, the price of steel bar has been called for more than 1 million won per ton, and it is even impossible to buy it with more money.
Recently, the South Korean government convened people in the steel industry to urgently discuss solutions and plans to centrally control the stockpiling of steel bars by middlemen. As the supply problem cannot be improved in the short term, industry insiders predict that South Korea’s “rebar shortage” is likely to continue until the end of this year.
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