South Korea's POSCO (005490.KS), the world's No. 4 steelmaker, may have to continue its production cut through the current quarter, because it was unsure about a recovery in steel prices, its chief executive said on Monday.
I think we need to extend the current production cut probably for a few months. Probably it will last until the end of the first quarter, POSCO CEO Lee Ku-taek told reporters on the sidelines of a steel industry gathering.
I will be very relieved if we can confirm the bottom of the steel industry cycle in the first half.
Last month it announced its first-ever production cut by slashing output by 200,000 tonnes in December and by 370,000 tonnes in January. The cuts average around 10 percent of monthly production and 2 percent of its annual output. (Reporting by Miyoung Kim; Writing by Kim Yeon-hee; Editing by Ken Wills)
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