[Asia Economy Reporter Hwang Yoon-joo] Shares of POSCO are falling by more than 3% immediately after the market opened, following projections that it will take about six months for the POSCO Pohang Steelworks hot rolling mill to return to normal after flood damage.
As of 9:11 a.m. on the 15th, POSCO was trading at 232,000 won, down 3.13% (7,500 won) from the previous trading day.
On the previous day, Jang Young-jin, First Vice Minister of the Ministry of Trade, Industry and Energy, stated in a briefing, "The blast furnace has been normalized, but there are issues with the product factories. In the case of Hot Rolling Mill 2, it is expected to take more than six months at the maximum," adding, "Other areas also require additional verification, but we believe it will take time to normalize."
Earlier, POSCO's steelworks area was flooded and all processes experienced power outages due to Typhoon 'Hinnamno' and the flooding of Naengcheon. Since the 7th, employees as well as civilian, government, and military personnel have been making every effort to carry out restoration work.
The Ministry of Trade, Industry and Energy has also activated the 'Steel Flood Recovery and Supply-Demand Inspection Task Force (TF)' to support flood recovery efforts on site and minimize the ripple effects on demand industries and exports/imports.
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