Reuters quoted Mr Chung Joon yang CEO of POSCO as saying that it expects its business to start to recover from the second half of 2009.
Mr Joon yang also said that it was seeking an agreement with Australia's BHP Billiton on cutting iron ore prices by 33% for 2009-2010 supply. He added that "The second quarter will be the most challenging period and we expect the business conditions to improve from the second half of this year."
It may be noted that Japanese, South Korean and Taiwanese steel firms recently agreed on a 33% price reduction with Rio Tinto, but China has refused to accept it, arguing that a deeper cut was needed as many mills are struggling with mounting losses and tumbling sales.
Mr Chung said that "Japanese steel firms are leading the talks with BHP and we seek to lower prices by the same level to what we've already agreed. We don't view the deal positively and other steelmakers also oppose the deal."
POSCO also joined other Asian steelmakers opposing the proposed joint venture between BHP and Rio Tinto to create an iron ore giant controlling around one third of the globally traded iron ore market.