Korean steel manufacturer, POSCO, has cut stainless steel prices by up to 14% - its second price reduction in 6 months - to reflect falling input costs and weak demand. The move is "to respond to imports of cheaper stainless products from Japan and Taiwan as well as to reflect falling ferrochrome prices."
The company has cut prices and production of stainless steel products since the third quarter of 2008 as buyers delay purchases on the expectation of lower prices. However production cuts deepened in the fourth quarter, cutting output by 38% from the previous quarter, as the deepening global economic downturn hit the steel industry and weakened demand for rustproof stainless steel, used in products ranging from kitchenware to machinery and aircraft.
POSCO said that prices of its benchmark hot rolled stainless steel will fall by KRW 500,000 or 14% to KRW 3.15 million and value added cold rolled products also drop by KRW 500,000 or 13% to KRW 3.42 million.
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