China Steel Corporation (CSC), the largest integrated steel producer in Taiwan, recently announced that it is planning to cut its crude steel production by 20 percent in the fourth quarter this year, due to the lackluster global economic conditions.
In line with the planned output reduction, CSC said it will also request its main suppliers of iron ore and coking coal, namely, Australian miners BHP Billiton and Rio Tinto, to postpone shipments.
In 2010, CSC's crude steel production totaled 12.7 million mt. Based on this figure, the company's crude steel production in Q4 will be reduced by about 200,000 mt per month, resulting in respective reductions of 330,000 mt and 120,000 mt in supplies of iron ore and coking coal needed per month.