POSCO "Resupply All Products Within 3 Months... Prioritizing Supply Stability"

Inventory of Key Products Such as Hot-Rolled and Heavy Plates at 2-3 Months Level
"Low Possibility of Supply Disruption Before Normalization of Operations"

Pohang Steelworks is making every effort to recover from flood damage caused by Typhoon Hinnamnor. An employee at the No. 1 Cold Rolling Mill is conducting equipment and safety inspections on the 20th in preparation for restarting operations at the end of this month.

[Asia Economy Reporter Oh Hyung-gil] POSCO's Pohang Steelworks, which suffered typhoon damage, announced on the 21st that it will strive to stabilize the supply and demand of domestic steel products by resupplying all products within three months.

POSCO is focusing its efforts on restoring the Pohang Steelworks, which was flooded by Typhoon Hinnamnor on the 6th. On the 15th, the billet division was fully normalized, and the restoration work of the rolling line, which was severely damaged by the flooding of the Naengcheon River, is also accelerating.

They aim for phased restarts by the end of this month for 1 cold rolling and 2 electrical steel sheets, in October for 1 hot rolling, 2 and 3 heavy plates, and 1 wire rod, in November for 3 and 4 wire rods and 2 cold rolling, and in December for stainless steel 2 cold rolling and 2 hot rolling plants.

Due to production disruptions of major products, POSCO is conducting a full survey and detailed inspection of customer companies' supply and demand situations to devise measures to minimize supply disruptions.

However, it is reported that the inventory of major products such as hot-rolled, heavy plates, and stainless steel held by customers and distributors is at a 2 to 3-month level, so the possibility of supply disruption is considered low.

POSCO is also considering supply options such as switching production to the Gwangyang Steelworks and overseas subsidiaries, cooperating with other steelmakers, and importing through POSCO International if necessary.

Pohang Steelworks is making every effort to recover from flood damage caused by Typhoon Hinnamnor. An employee at the No. 1 Cold Rolling Mill is conducting equipment and safety inspections on the 20th in preparation for restarting operations at the end of this month.

In particular, POSCO plans to actively support customers so that they do not face difficulties in material supply for wire rods, stainless steel, and electrical steel sheet products produced only at the Pohang Steelworks.

The Pohang Steelworks wire rod plant consists of a total of four plants, with 1 wire rod scheduled to be restored in October, and 3 and 4 wire rods in November. The current inventory of wire rod products is known to be at an average of two months, so supply disruptions are expected to be minimal until October.

However, for urgent demand, POSCO plans to prioritize using its inventory while the 1 wire rod plant starts production next month to minimize customer inconvenience. Some large-diameter products that can only be produced at the 2 wire rod plant will pursue supply stabilization through strategic cooperation with other steelworks.

Stainless steel products currently have an inventory of about five months, so supply is expected to be sufficient. POSCO also plans to consider domestic supply using overseas production subsidiaries in China or Thailand if necessary.

The inventory of grain-oriented electrical steel sheets used in transformers and non-oriented electrical steel sheets used in electric vehicle drive motors and home appliance motors is at a 2 to 3-month level. The 3 electrical steel sheet plant has already started operation, and the 2 electrical steel sheet plant is scheduled to start full operation at the end of this month, so most domestic demand is expected to be met.

For some high-efficiency non-oriented electrical steel sheet products for automobiles, POSCO is discussing with customers the conversion of production to the hot rolling plant at the Gwangyang Steelworks and certification procedures to ensure smooth supply.

Also, BP products, which are the raw material for coated steel sheets, are produced at the Pohang Steelworks, and the inventory of BP for battery cases is expected to be at a three-month level. Since the 1 hot rolling plant, the upstream process, will be restored by the end of October and product shipments will be possible, there is expected to be no immediate impact on supply.

For shipbuilding heavy plates, general products can be sufficiently produced at the Gwangyang Steelworks, and heat-treated and thin (less than 10mm thick) products mainly produced at the Pohang Steelworks will consider conversion production at the Gwangyang Steelworks and alternative supply from Indonesia.

Automotive steel sheets are mostly produced at the Gwangyang Steelworks, so the impact on customer operations is expected to be minimal.

A POSCO official said, "China, which has a significant impact on the global steel market, is experiencing little fluctuation in steel prices due to demand slowdown, and flood recovery is progressing smoothly, so domestic steel prices are not expected to move significantly," adding, "We are carrying out restoration work as planned and communicating closely with customers on a daily basis to respond stably to domestic demand."

This content was produced with the assistance of AI translation services.