Imported ferrous scrap arrivals into South Korea fall 7% w-o-w

Imported ferrous scrap arrivals at major ports in South Korea have fallen w-o-w this week. The volumes totalled 85,745 t, a 7% reduction (7,000 t) from the previous week. This was due to fewer import contracts with steelmakers in February and March when domestic pricing remained consistent and inventories were plentiful.

Imports from two major buyers, POSCO and Hyundai Steel, in particular, are dropping substantially.

Company-wise imports

• Hyundai Steel: The volume imported by Hyundai Steel continued to fall for the sixth week. Imports have been decreasing since the last week of February when the company brought in 60,000 t.
  Only 10,500 t of scrap were imported for Dangjin and Pohang works while Incheon Port does not accept imports.
  
  
• Dongkuk Steel: Dongkuk Steel, on the other hand, maintained a consistent import volume in contrast to other steelmakers. The company alone imported 30,736 t into Incheon port, a drop of around 3,000 t from the previous week.
  
  
• Daehan, YK, and SeAH Besteel: SeAH Besteel also maintained a consistent import volume of 21,000 t through Gunsan port. This was a 1,000 t increase over the previous week.
  In addition, YK Steel and Daehan Steel imported 15,500 t into Busan port, and Korea Steel imported 2,000 t into Masan port.
  
  

• POSCO: POSCO imported 6,009 t of scrap into Pohang port. Imports, which had been sluggish since the flood damage, recovered in March but quickly dropped back to under 10,000 t.
  POSCO imported 37,000 t of scrap per week on an average in 2021 and 23,000 t per week in 2022.
  
  

Ferrous scrap imports, which have been increasing at the start of the year, were clearly declining as the first quarter has finished. The average port arrival per week at key ports around the country was 131,740 t in Q1. This was the lowest first-quarter volume ever recorded.

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