China Steel, Taiwan's top steelmaker, plans to ask miners
BHP Billiton and Rio Tinto to delay iron ore and coking coal deliveries as a
slower global economy prompts it to cut output, a senior company official said.
Sluggish demand has forced steelmakers across Asia to curb
production, although China Steel may be among the first to have sought a delay
in raw material shipments.
“We are getting ready to talk to our suppliers about
that in hopes they can put off their shipment,” said a China Steel
executive, who asked not to be identified, when asked whether the company has
asked to postpone raw material deliveries.
“The euro zone debt crisis is widening and the U.S.
economy is not in good shape.
“We have adjusted our output for November and will
continue into December due to regular maintenance of manufacturing
equipment,” said the executive.
Analysts say the Taiwanese steelmaker's plan was not too
surprising given the gloomy state of the regional economy and elsewhere.
“In the Asia Pacific market, except for the Chinese, no
one is seriously buying because outside of China, demand is quite flat right
now,” said Henry Liu, head of commodity research at Mirae Asset Securities
in Hong Kong.
Steel mills in China have also reduced production although
the cuts have been marginal, said Liu, allowing producers to continue buying iron
ore.
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