Adjustments in Asian sheet and coil supply in 2007

SteelOrbis Shanghai It is said that there could possibly be an adjustment of sheet and coil supply in Asia in early 2007. Prices increased lately due to growing exports, especially to the EU. Traders say that if the EU takes any measures to limit imports from China, it will not be good for the Asian market. From the second half of next year, POSCO's Kwangyang No.3 hot rolling line will enter a 50-day renovation period, resulting in an 800,000 mt output decrease and a reduced export supply in Q4 next year. After renovation, the capacity of the Kwangyang No.3 line will be up to 4.4 million mt – an extra 400,000 mt compared with the current 4 million mt. In addition, in Q1 next year Taiwan based China Steel will cut 40,000 mt of its supply of cold rolled products and 15 percent of medium and thick plate. Currently, only China Steel (1,100,000~1,200,000 mt/year) and Donghe Steel (200,000~300,000 mt/year) produce medium and thick plate in Taiwan.