POSCO plans to make first production cut in 12 years
2020-05-13 11:59:48 [Print]
POSCO has decided to make the first cut in production in 12 years since 2008. POSCO plans to reduce production capacity of 980,000 tons in May only by lowering the utilization rate of its production lines such as cold- and hot-rolled steel sheets at Pohang and Gwangyang Works, said sources in the steel industry on May 10. Specifically, POSCO will cut 180,000 tons at Pohang Works and 800,000 tons at Gwangyang Works. Given that the crude steel production of Pohang and Gwangyang Works in Q2 of 2019 hit 8.85 million tons, POSCO will decrease its average monthly production by more than 30%.
The main culprit behind this cut is a slowdown in demand from the downstream industry, triggered by the COVID-19 crisis. In particular, a decline in automobile production had a big impact on the cut.
The main culprit behind this cut is a slowdown in demand from the downstream industry, triggered by the COVID-19 crisis. In particular, a decline in automobile production had a big impact on the cut.
