Reuters reported that POSCO expects a difficult business environment in the second half because of oversupply in the domestic market and increasing steel imports.
Mr Chung Joon yang CEO of POSCO said that it expected domestic demand to grow 10% or more in 2010.
Mr Kim Jin il senior executive vice president at POSCO told Reuters that the company planned to run its plants at full capacity until July, but added that the utilization ratio from August would depend on market conditions. Mr Kim also said that POSCO would decide on third quarter steel product pricing soon, following negotiations with raw materials providers.
He added that "We will decide how much we will raise prices by late June or early Jul 2010."
POSCO raised prices for its benchmark steel product by 25% from May, the company''s first price adjustment in a year, to reflect rising global steel and raw materials prices.
It may be noted that Asia''s steel market has sagged since hitting a high in the middle of April and China''s Baoshan Iron & Steel Co has cut its July prices as traders are wary of the demand outlook for China.