11/15/2011 11:13:00 AM
NEWS BRIEFS
Report: China Steel Trimming Capacity by 20%
Taiwan-based China Steel Corp. will cut capacity by 20% in December “to cope with the sluggish global steel market,” CENS.com reports.
Downstream producers Yieh Phui Enterprise Co., Sheng Yu Steel Co. and Kao Hsing Chang Iron & Steel Corp. are expected to follow suit.
China Steel decision reportedly was influenced by slowing sales due to the European sovereign debt crisis, flooding in Thailand and oversupply in China.
“Declining demand is depriving Taiwan’s downstream producers of steel products of new orders, so they have asked CSC to reduce wholesale prices of its major products to be shipped in January and February 2012,” CENS.com reports.
The reduction follows strong orders for October and November.
The last time the steelmaker slashed capacity was during the global financial crisis in the final quarter of 2008 and the opening quarter of 2009, when China Steel cut production by as much as 30%. ©2011 GlobalFastenerNews.com
Taiwan-based China Steel Corp. will cut capacity by 20% in December “to cope with the sluggish global steel market,” CENS.com reports.
Downstream producers Yieh Phui Enterprise Co., Sheng Yu Steel Co. and Kao Hsing Chang Iron & Steel Corp. are expected to follow suit.
China Steel decision reportedly was influenced by slowing sales due to the European sovereign debt crisis, flooding in Thailand and oversupply in China.
“Declining demand is depriving Taiwan’s downstream producers of steel products of new orders, so they have asked CSC to reduce wholesale prices of its major products to be shipped in January and February 2012,” CENS.com reports.
The reduction follows strong orders for October and November.
The last time the steelmaker slashed capacity was during the global financial crisis in the final quarter of 2008 and the opening quarter of 2009, when China Steel cut production by as much as 30%. ©2011 GlobalFastenerNews.com
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