POSCO's stainless steel output drops in Q2 on weak demand

POSCO, one of the leading steelmakers in South Korea, reported its output of stainless steel in the second quarter of 2019 was not only lower than that in the first quarter but also that in the same period of 2018. 

In the second quarter of 2019, the output of stainless steel was 466,000 tons, dropping by 12.7% year on year. At the same time, downstream demand was also decreasing, but the crude steel output grew quarter on quarter. 

The main reason for such a large decline was that the actual demand for steel in the downstream was not strong, the price support was weak, and the profit was also decreasing while the output was dropping. The future output of stainless steel will depend on the actual market demand.