South Korea-based POSCO, one of the world's largest steelmakers, has announced that it may further cut steel production in the current quarter to cope with slumping demand from automakers and electronics manufacturers. The producer also stated that it will make its decision in January on the possible output reduction.
POSCO, which produces around 2.75 million mt of crude steel monthly, has planned to cut output by a combined 570,000 mt in late December 2008 and in January 2009. The production cut, the first-ever to be implemented by the steelmaker in 35 years of operations, has been aimed at reducing the rising levels of inventory.