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South Korea: Ferrous scrap inventory at major mills reports modest drop of 1% w-o-w

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Melting Scrap

BigMint Bureau

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17 Apr 2024, 16:50 IST

South Korea: Ferrous scrap inventory at major mills reports modest drop of 1% w-o-w

This week, the ferrous scrap inventory across eight major South Korean steel mills experienced a modest 1% decline, totalling 862,000 tonnes (t) compared to the 868,000 t reported in the previous week. Regionally, the central area, which had lower operational rates due to extended maintenance, saw a decrease, while the southern region observed a slight increase in inventory, attributed to reports of price reductions.

Region-wise inventory

Central region: In the central region, scrap inventory decreased by 2% compared to the last week, totalling 479,000 t. Among companies, Hyundai Steel's Incheon and Dangjin facilities maintained stable inventory levels, whereas Hwangwan Steel experienced a 4% decrease and Dongkuk Steel saw a 7% reduction, respectively.

Southern region: In the southern region, inventory experienced a slight uptick as warehousing activities intensified alongside news of price reductions. This week, steel mills in the southern region collectively held 383,000 tonnes of steel scrap, reflecting a 1% increase from the previous week.

By company, Daehan Steel and YK Steel saw integrated inventory levels rise by 11% compared to the last week, while Korea Steel recorded a 2% increase. Hyundai Steel's Pohang plant maintained its inventory at the same level, while POSCO's decreased by approximately 1%. Additionally, it has been confirmed that Korea Special Steel also exhibited a notable increase in inventory.

The ferrous scrap industry remained vigilant regarding plant operating rates due to the potential for adjustments in non-operational days. This concern stems from ongoing sluggish product demand caused by the economic recession. Of particular note is the significant reduction in production schedules not only for rebar but also for H-beam steel, which has increased the variability in factors affecting the industry.

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