POSCO likely to ease output reduction in Q3

SEOUL, June 21 (Yonhap) -- POSCO, South Korea's leading steelmaker, is expected
to ease its production cuts in the third quarter of the year as steel demand is
on the rise and one of its furnaces halted for improvements is set to resume
operation, industry sources said Sunday.
POSCO, the world's fourth-largest steelmaker, slashed its output for the first
time in its 41-year history in December as carmakers and home appliance makers
reduced production at home and overseas.
In March, POSCO said it will extend output cuts into the second quarter from
between 900,000 tons to 1 million tons in crude steel production.
According to the sources, POSCO is planning to operate one of its furnaces next
month, whose operations have been halted since March for upgrading.
"The furnace is expected to restart operations late next month" said an official
at POSCO.
POSCO's steel sales have increased sharply recently, according to the sources. In
the first four months of the year, POSCO's monthly steel sales have hovered below
2 million tons. But sales topped 2 million tons last month, and are expected to
reach around 2.4 million tons this month.
sam@yna.co.kr
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