Severstal and Chalco cutting output (November 03, 2008)

Severstal, Russia’s largest steel maker, is slashing output in Russia, the U. S. and Europe by 25-30% amidst slowing demand, according to a report by Bloomberg news.

Production will be cut 30% in the U. S. and Italy, and 25% in Russia. The report says that Russian steelmaker Magnitogorsk Iron and Steel, Austrian steelmaker Voestalpine (VLPNF-O, VAS-l),and Korean stainless steelmaker Posco (PKX-N, PIDD-l), are also cutting production.

Meanwhile, Reuters reports that Aluminum Corp. of China (ACH-n), or Chalco, may have to cut output because of low prices. The company, which is the world’s third-largest producer of alumina, may shut down some high-cost aluminum capacity. The report says that Chalco may try to make up the volume by running full capacity at its low-cost aluminum operations.