Despite the efforts of US domestic stainless producers to shutter capacity to shore up prices, Posco had to pursue both production cuts and price reductions. On Friday, Posco announced it would lower stainless prices by up to 14% because of falling demand and lower input costs. Posco, who is facing stiff import competition from Japan and Taiwan, had to resort to price cuts to better compete.
Stainless producers around the globe have aggressively cut production to help shore up prices. Thainox Stainless Plc INOX.BK and ThyssenKrupp have either shut down plants for one month or extended holidays to reduce production. Meanwhile, the US mills have also furloughed and laid off workers to bring production in line with demand. Reuters reports that Posco is selling their hot-rolled stainless steel for about $2,287/mt based on Friday’s currency exchange rates.
Buyers of Asian-produced stainless steel products can track prices with our own MetalMiner IndX(SM). We will be adding a full range of Korean price points including stainless during Q2 of this year.