South Korean steelmaker Posco has gradually resumed operations after the recent typhoon and floods. Some rolling lines however could be out of action for as long as three months.

Much of the Pohang plant, including three blast furnaces, were forced to stop production on 6 September when Typhoon Hinnamnor triggered flooding and a fire at the plant. The blast furnaces have since resumed production.

Posco says the shutdowns could result in a production loss of approximately 1.7 million tonnes. Sales are expected to fall by KRW 2.4 trillion ($1.72 billion) due to the production suspension, comprising 2.7% of last year's consolidated sales.

Posco is working on a rolling line recovery plan. From the end of September, it will resume cold-rolled sheet, electrical steel sheet and thick-plate production lines. The goal is to restart the remaining wire rod, hot strip, and stainless steel lines in early December, Kallanish notes.

The Gwangyang plant of Posco will therefore take over the production of stainless steel and electrical steel sheet that were previously only produced at the Pohang plant. When necessary, Posco will make use of overseas bases such as Krakatau Posco in Indonesia, Posco-Maharashtra in India, Posco Zhangjiagang Steel in China, and Posco-Thainox in Thailand.

The steelmaker says this will not have a serious impact on market supply, given that most of Posco's steel product stocks are sufficient for 2-3 months of consumption.