According to local media, South Korean steelmaker POSCO plans to reduce its production volume for the first time in 12 years since the global financial crisis in 2008 due to declining demand from the downstream industry, especially from the automotive sector, against the backdrop of the coronavirus pandemic. POSCO has not cut down its production until now contrary to its rivals such as ArcelorMittal and Hyundai Steel.
POSCO is considering cutting its production by 980,000 mt in May just by lowering the utilization rate of its production lines such as cold and hot rolled steel sheet lines at its Pohang and Gwangyang Works, SteelOrbis understands. Specifically, POSCO will cut 180,000 tons at Pohang Works and 800,000 tons at Gwangyang Works.
Before this, POSCO did not have to reduce its production as it had started repair works at blast furnace No. 3 at its Gwangyang Works in the first quarter of this year. Now, however, it plans to extend the completion of the repair works at the blast furnace from the end of May to August or September.