Monthly global stainless steel production trimmed
Korea’s Posco joins other steelmakers in reducing stainless steel smelting
By Tom Stundza -- Purchasing, 12/17/2007 8:54:00 AM
The global slowdown in stainless steel demand has triggered cutbacks in nickel-based steelmaking in Europe, China and now South Korea. Posco, the world's fourth-largest steel maker, started in early December to reduce monthly stainless steel output by 20%, responding to slowing demand at home and in its large export markets. "Chinese and European stainless steel makers are also trimming output. We have no choice," a company official in Seoul told Reuters recently.
The monthly reduction in output coincides with a stainless steel price reduction by Posco, effective today, so that 300-grade hot-rolled stainless steel products will slide to $3,669/ton. The price of 300-grade cold-rolled stainless steel will be cut to $3,960.
The price cuts come after customers have delayed orders for stainless steel, anticipating that prices would fall further due to tumbling nickel prices. The drop in U.S. use through September was more than 12%. Global nickel prices have fallen 50% to $11.75 today on the London Metal Exchange from a peak of $23.50 in May—amid concerns about 2008 stainless steel demand and the impact of world credit market problems.
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