Some of the world's largest steelmakers are likely to reduce output further as they struggle with worsening global demand and pressure to cut their prices during the current downturn.
Accordingly, chairman of Japan's Nippon Steel Corp., Akio Mimura, has stated, "We had announced 2 million tons, but it probably won't stop there," referring to the company's previously-announced production cut for the second fiscal half ending March 31. Mr. Mimura said the company would announce details of the production cut by February or March.
Also, South Korea's POSCO, the world's fourth largest steelmaker, said it may have to extend its first-ever output cut through the current quarter. In December the company had announced its first-ever production cut, of 200,000 mt, and a further production cut of 370,000 mt in January.
On the other hand, the world's largest steelmaker ArcelorMittal has decreased production by 35 percent at its Czech facilities due to the ongoing weakness of demand. The Czech plant has also laid off about 350 employees.