POSCO, the world's No.4 steelmaker, said on Tuesday that it has decided to cut the stainless steel prices by up to 10 percent due to the decline in prices of nickel, a key raw material in the alloy, in the international market.

The decision follows a 25,000 ton output reduction in July and a similar cut this month by the South Korean firm to tighten market conditions, as buyers delay product purchases on expectations of price cuts.

POSCO said it will lower the price of the popular 300-grade hot-rolled stainless steel products by 400,000 won (USD386.9) to 3.65 million won per ton from Aug. 18, and prices of cold-rolled goods by the same amount to 3.92 million won.

Prices of rustproof stainless steel, used in products ranging from kitchenware to machinery and aircraft, have come under pressure recently as prices of nickel have declined since early March.