Inventories with South Korean steelmakers rise over 820,000 t in end-October

South Korea, one of the major scrap buying countries in the world, saw the inventories of its steelmakers increase to 821,000 tonnes (t) in the final week of October, an increase of 76,000 t from last week, but the rebound is still not abundant. This appears to be the result of inventory management used by steel producers rather than a result of rising prices, as per SteelDaily.

• Hyundai Steel: The inventory at Hyundai Steel grew by 11% over the previous week. While stocks in Dangjin are unchanged from those in Jeonju, those in Incheon and Pohang have grown.
  
  
• Dongkuk Steel: Dongkuk Steel saw a 1.5% nudge higher compared to the previous week.
  
  
• POSCO Steel: The inventory at POSCO rose by 7.1% in the Yeongnam sector.
  
  
• Hwan Steel: Hwan Steel's inventory rose by 87% from last week, which is a big increase. In contrast, the inventory size was small, and therefore it had little impact on the inventory variations of other steelmakers.
  
  
• Daehan, YK, and Korea Steel: The stockpiles of Daehan Steel, YK Steel, and Korea Steel all climbed by 17%, while Korea Steel's inventory rose by 20%.
  
  

Other updates:

Steelmakers are expected to operate their inventories and restrict them for the time being. Due to a decline in scrap consumption, POSCO also lowered the amount allotted to stocks by account companies.

In November, Hyundai Steel plans major repairs in Incheon and Dangjin, and scrap supplies and demand are likely to remain constrained.

Rebar steel producers in the Busan-Gyeongnam area are reportedly preparing to reduce output as a result of the rising cost of electricity during winter. It is possible to maintain steelmakers' inventory levels at a lower level than in previous years.

Note: This article has been published in accordance with an article exchange agreement between SteelDaily and SteelMint.