Korea Times reported that POSCO has decided to lower its steel production later this month as part of its efforts to combat steel prices from falling further amid the prolonged economic slump.

POSCO said that it will not operate its plants at a full capacity in late October to prevent prices of steel products from heading further south.

A POSCO spokesman said “We will reduce production later this month by not operating our electric furnaces at full capacity. But we will not stop running blast furnaces. It is common to adjust production volumes through the operation of electric furnaces in accordance with market conditions. So, it is not right to say that we are in full scale downsizing mode.’’

POSCO operates two electric furnaces churning out 900,000 tonnes of hot rolled steel plates each, accounting for 7.6% of its entire production.

Source - Korea Times

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