Wed, Jul 24, 2013 - Page 13 News List

China Steel slates furnace maintenance

By Camaron Kao  /  Staff reporter

China Steel Corp (中鋼) will shut down one of its four furnaces for maintenance between September this year and February next year, which is expected to reduce its production of molten iron by 30 percent.

The maintenance will cost the company about NT$5 billion (US$167.34 million) and is being implemented three months earlier than scheduled to repair the furnace’s cooling system, China Steel vice president Steve Lee (李慶超) said by telephone yesterday.

INVENTORY

“Although the maintenance will reduce our production of molten iron, it will not affect our sales because we have pre-stocked 800,000 to 900,000 tonnes of steel slabs [which are made from molten iron] over the past two years,” Lee said.

China Steel will purchase molten iron from its subsidiary Dragon Steel Corp (中龍鋼鐵), if necessary, Lee said.

Yuanta Investment Consulting Co (元大投顧) yesterday said that the planned maintenance would not affect China Steel’s supply because the firm has enough inventory of steel slabs and market demand remains weak.

SinoPac Securities Investment Service Co (永豐投顧) also said that China Steel should be able to supply enough steel products for its customers because Dragon Steel can supply hot-rolled sheets and coils to China Steel during the maintenance period.

This story has been viewed 1545 times.
TOP top