NSC and CSC to supply slab to each other

NSC and CSC to supply slab to each other

Japanese steel producer Nippon Steel Corp (NSC) and Taiwanese steel producer China Steel Corp (CSC) have recently signed an agreement to supply each other with slab in 2005 in order to offset production declines resulting from facility upgrades and repairs. Analysts commented that the agreement indicates that supply is fairly tight as it has been made between foreign producers. As previously reported by SteelOrbis, two Japanese automakers Nissan and Suzuki announced that they plan to temporarily halt production at some of their mills due to lack of supply. In line with the deal, NSC will supply 120'000 tons of slab from CSC in January- March 2005 period. In return for this, CSC will supply approximately the same amount of slab from NSC in August-November period in 2005.