POSCO cuts stainless output due to lower demand

SEOUL, Dec 14 (Reuters) - POSCO (005490.KS), the world's fourth-largest steel maker, has started to reduce stainless steel output again in early December, responding to slower demand, company officials said on Friday.

"We plan to cut stainless steel output from December to early next year by a total of around 130,000 tonnes," said one official, who declined to be named.

The South Korean steel maker produces around 2 million tonnes of stainless steel a year.

POSCO also will cut prices of stainless steel products by 400,000 won ($431.6) per tonne, effective from Dec. 17.

The moves come after customers have delayed orders for stainless steel, anticipating that prices would fall further due to tumbling nickel prices, a key input in the alloy.

Global nickel prices MNI3 have fallen 50 percent since hitting an all-time high of $51,800 per tonne in May on growing worries about demand as credit market problems spread to the broader economy. (Reporting by Kang Shinhye; Editing by Sei Chong)