South Korea: Ferrous scrap arrival touches 20,000 level w-o-w; lowest since 2019

The rate of decline in imports has been noticeably increasing in South Korea in recent times. This week, major ports across the country reported a mere 2,150 tonnes (t) of new arrivals, marking the lowest figure since 2019. This decline in import volume is attributed to the current supply and demand situation of steelmakers.

Company-wise arrival: Among the steel companies, only Hyundai Steel, Dongkuk Steel, Korea Steel, and YK Steel have brought in small quantities to the base port. On the other hand, POSCO, Seah Besteel, and Daehan Steel have not reported any new arrivals.

• Hyundai Steel imported 3,000 t from Incheon and 6,000 t from Pohang, resulting in a total of 9,000 t.
  
  
• Dongkuk Steel alone imported 9,500 t from Incheon.
  
  
• At Masan port, 2,000 t scrap arrived for Korea Steel.
  
  
• At Busan port, 1,000 t scrap arrived for YK Steel.
  
  

Notably, this is the first time since 2019 that the weekly import port volume has remained in the 20,000-t range. Prior to this, the smallest weekly quantity recorded was 53,820 t in January 2021, indicating a substantial gap between current and previous import levels.

Reason behind the decline: The main reason behind this decline in imports seems to be the ongoing delay in the arrival of imported scrap, as the scrap supply and demand situation for steelmakers has been relatively relaxed, accompanied by a decrease in demand. Starting from May, there has been a decrease in the number of new contracts, leading to further delays in their arrival.

Ferrous scrap imports in 2023: According to data from the Steel Association, iron scrap imports totalled 1,949,000 t in the first half of 2023, marking the lowest level in almost a decade. While the decline in import volume is evident, the recent decrease in port arrivals raises concerns about the likelihood of the downward trend continuing in the future, given the prevailing supply and demand situation.

The current state of the steel industry, with sufficient supply and relaxed demand, has contributed to the pronounced decline in imports. The delay in the arrival of imported scrap and decreasing contract numbers have further impacted the import volume. As steelmakers navigate these challenges, the industry's future import levels remain uncertain.

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