South Korea: Ferrous scrap imports at major ports decline w-o-w

Total ferrous scrap imports at major ports in South Korea this week was 71,384 tonnes (t), a slight decrease from the previous week. This is probably due to Japan's Golden Week holidays. It has been below 100,000 t for more than a month and the drop in import volume is now clearly visible since the end of March.

Two major companies, Hyundai Steel and POSCO, are not seeing an increase in their import volumes.

However, imports from Russia, signed by Dongkuk Steel and Hyundai Steel at the beginning of the year, have been entering Incheon Port and Pohang Port since last week, making up for reduced Japanese imports.

Company-wise imports

• Hyundai: Hyundai Steel brought in 2,500 t from Incheon Port and 15,500 t from Pohang and reported a total of 18,000 t of steel scrap imports. This is an increase of 1,500 t from last week. The 4,000 t of HMS that entered Pohang are estimated to be from Russia.
  
  
• POSCO: POSCO, which has been showing low import volumes recently, brought only 6,084 t of scrap to Gwangyang Port this week. While scrap imports were low, HBI brought into Gwangyang Port stood at 35,199 t.
  
  

POSCO also brought in 15,000 t of HBI last week. This is in sync with the company's plan to increase the use of low-carbon reduced iron to respond to carbon neutrality targets.

• Dongkuk: Dongkuk Steel reported 30,600 t of scrap in Incheon alone. This excludes domestic scrap transported by sea. About half of the 30,600 t appear to be scrap from Russia.
  
  

According to an official from Dongkuk Steel, Russian scrap, which began entering the port last week, was delayed due to the supplier's circumstances with the quantity contracted at the beginning of this year.

With the recent slowdown in domestic distribution volume and the arrival of Russian scrap, Dongkuk Steel's scrap supply and demand situation has become more relaxed.

• SeAH Besteel, Korea Steel, Daehan, YK Steel: At Gunsan Port, SeAH Besteel only registered 6,800 t of scrap. SeAH Besteel has been steadily bringing in an average of 20,000 t of scrap every week through Gunsan Port, but this week it seems to have brought in less of Japanese scrap than usual due to Japan's Golden Week holidays. Around 900 t of scrap was imported by Korea Steel in Masan Port and 9,000 t of scrap was imported by Daehan Steel and YK Steel in Busan Port.
  
  

Grade-wise scrap imports

The decrease in revenues for Shindachi and shredded was clear. Shredded has had no port arrivals for two consecutive weeks and Shindachi only accounted for 3,000 t or 4.2% of total port arrivals. HMS accounted for 5.6% of the total with 4,000 t and H2 accounted for 17.5% with 12,500 t.

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