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Reuters reported that South Korea's POSCO plans to produce 32 million tonnes of crude steel in 2010 as compared with under 30 million tonnes estimated in 2009.

Mr Lee Dong hee president of POSCO said that POSCO's crude steel production would rise this year, as the company has no plans to reduce its operations, which have been at full throttle since the third quarter of last year.

In October 2009, POSCO revised its 2009 crude steel output target down to 29.5 million tonnes from its previous 29.80 million tonnes.

Asked if POSCO plans to raise steel product prices, Mr Lee said that "While Chinese are raising prices, we have no plan yet. Which side will be at the better position in the talks will be depending on the first-quarter steel market movements."

POSCO made a surprise 20% price cut in May and has yet to announce any change, selling hot rolled steel at KRW 680,000 a tonne. It has yet to negotiate raw material purchase deals for the new fiscal year starting in April.

(Sourced from www.reuters.com)