Severstal and Chalco cutting output (October 14, 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. Production will be cut 30% in the U.S. and Italy, and 25% in Russia. The report says that Russian steel maker Magnitogorsk Iron and Steel, Austrian steel maker Voestalpine, and Korean stainless steel maker Posco, are also cutting production.

Meanwhile, Reuters reports that Chalco (Aluminum Corp. of China) 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.