Based on the report from Japan Iron and Steel Federation, Japan's crude steel output will reduce by 5% in 2011 and 2012.

Taiwanese coating steel mills, Yieh Phui and Sysco said once Asian steel mills' production reduction become effective, it will help steel market to recover soon.

However, market analysts said that though the steel market prices may be supported by mills' production cut, it won't have the blooming raising in next quarter.

Meanwhile, most of the steel flat mills in Taiwan such as Kao Hsing Chang and Chung Hung Steel might have to face the net profit loss pressure again in 2011.

(Sourced from www.yieh.com)