South
Korea's largest steel producer POSCO disclosed that it will cut steel
production by 300'000 tons this year to ease rising inventories and prevent a sharp price decline.
POSCO added that it may decide on another
production cut soon if the current market situation continues.
The company explained that due to weak steel demand and strong steel imports, local steel producers have seen their steel inventory rise sharply. This situation has prompted many of the producers sell their goods at extraordinarily cheap prices.