Taiwanese steel producer Yieh United Steel Corp (YUSCO) reportedly will reduce its
stainless steel
production by 30 percent in July in an attempt to stop prices from falling further.
The move means that YUSCO, which produces around 83'000 tons of
stainless steel per month, will cut
production by nearly 20'000 tons in July.
A YUSCO official reminded that the
stainless steel prices have been following a downward trend for a couple of months and that distributors have been building up excessive inventories. Therefore, in an effort to stop prices from continuing their fall, the company decided to reduce its
production.
YUSCO's decision falls in line with similar moves made
stainless steel producers such as South
Korea's POSCO,
Germany's ThyssenKrupp, and
Japan's Nisshin Steel.