Recently, Hwang Eun-yeon , vice-president of South Korea's Posco Iron and Steel Company said that the steel market was hopefully to recover at the second quarter after investigating the first quarter .
It is said before by Posco that China’s economy growing slowly down lead to the demand of ship building being weak, China’s government is sure that economy will grow 7.5% in the year 2012,this goal is the lowest goal in these 8 years, so people begin to worry about the slowing down demand for steel from large demanded countries.
HwangEun-yeon said that because of the low demand, Asian and European ‘s steel factory all reduced the production volume, but Posco is steel keeping full production capacity ,this year, Posco will reach the record of producing 38300 thousand tons of crude steel ,it is predicted that the crude steel’s production volume will rise 75% in 2020, it will be 70000 thousand tons .
Posco will not adjust the price recently, Korea’s steel factories including Posco is planning to reduce the discount of price to respond as the support to the demand of cars and shipbuilding industry, analyst also said it is hard for Posco to rise the price because of the low demand and the reduced import price of the raw material at the second quarter .
Pusco said , the price of iron ore and coking coal is reduced in the import contract, the price for the raw material is predicted to be stable for a long time.
Hwang said, if it is needed, Posco Iron and Steel Company will think about to purchase soma steel factories abroad ,this plan is one of the plans to improve the production ability in the future 8 years .everything is under planning for the purchased steel factories and the greenbelt project .
Analyst predicted that Pusco’s operation profit will reduce 44% at the first quarter this year, it is reduced from last year’s 9210 hundred million KRW to 5150 hundred million KRW, The main reason is probably that KRW’s devaluation lead to the loss for foreign currency and it increased the cost for the imported raw material.