POSCO to raise steel production this year

SEOUL, July 21 (Yonhap) -- POSCO, South Korea's leading steelmaker, said Tuesday
it plans to raise its production by 6.4 percent this year on expectations that
demand will pick up in the second half.
It expects to produce 29.8 million tons of steel this year, up from an earlier
estimate of 28 million tons.
POSCO will restart its No. 4 furnace in the southwestern city of Gwangyang later
in the day after maintenance, taking advantage of a slight rise in demand as
customers start restocking. The 4.3-million ton furnace was closed in February.
Last week, the steelmaker reported a net income of 431 billion won (US$344
million) during the second quarter of this year, a 71 percent drop from a year
earlier brought on by a sharp fall in prices and rising raw materials costs.
Sales for the quarter ending June 30 fell 15 percent to 6.34 trillion won.
The steelmaker cut domestic prices for hot-rolled coils by 20 percent in May for
the first time since January 2006. It cut output for the first time in its
41-year history in December.
Demand for steel has been particularly hard-hit by the global economic crisis,
which has sapped builders and automakers.
POSCO said its earnings will rebound in the second half on lower materials costs,
rising production and exports.
sam@yna.co.kr
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