According to spokesman of Chung Hong Steel, it plans to cut hot rolled coil output by 5% to 10% to 180,000 tonnes per month in the third quarters of this year due to the soaring slab prices.

He said the hot rolled coil produced at present could not gain profit due to the current high slab price.

It is reported that Chung Hong Steel has already cut 16% to 20% output for the second quarter to 190,000 to 200,000 tonnes, lower than the normal 220,000 to 240,000 tonnes for each month.

As per report, China Steel Corp, the parent company of Chung Hong Steel stopped supplying slabs to Chung Hong Steel for the third quarter due to its No 1 blast furnace stopped operation.