South Korea: Ferrous scrap inventory at major mills remains largely stable w-o-w

This week, the combined ferrous scrap inventory of eight major South Korean steel manufacturers was approximately at 766,000 tonnes (t), remaining largely stable with a slight decrease of 1,000 t compared to the previous week's 767,000 t.

Meanwhile, inventory levels rose slightly in the southern region but dropped in the central region.

Region-wise inventory

Central region: The steelmakers' scrap inventory in the central region stood at 390,000 t, reflecting a decrease of about 8,000 t or 2% from the previous week. Company-wise, Hyundai Steel's Dangjin plant saw a 7.6% reduction, while both Hyundai Steel's Incheon plant and Dongkuk Steel kept their inventories at the same level as last week's. Meanwhile, Welcome Steel experienced a slight increase of 6.6%.

Southern region: In the southern region, the inventory was 376,000 t, an increase of 7,000 t (1.9%) from the previous week. In terms of companies, Korea Steel's inventory decreased by 6%, while Hyundai Steel's Pohang Works maintained the same level. Additionally, the combined inventory of Daehan Steel and YK Steel increased by 7%, and POSCO's inventory rose by 2.7%.

While the overall assessment indicates a decrease in production volume across regions, the varying trends in inventory are attributed to local factors such as different non-operational schedules. For instance, Daehan Steel's Noksan plant experienced a two-day shutdown early this week, leading to an increase in inventory. At Hyundai Steel, the Incheon plant maintained its inventory level due to an extended long-term maintenance schedule, while the highly efficient Dangjin plant saw a decline.

In the central region, Hwangwan Steel announced a price cut for the first time in a long while, following Hyundai Steel's price cut at the end of April, about a month and a half ago. Observers are closely watching for changes in distribution volume and the potential for additional price cuts.

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