South Korea: Ferrous scrap inventory declines by 10% w-o-w

• Stocks at Dongkuk fall 20%, Hyundai down 8% w-o-w
  
  
• SK steel output firm w-o-w despite fall in scrap stocks
  
  

SteelDaily: The combined ferrous scrap inventory of eight major South Korean steel mills declined by nearly 10% w-o-w to 713,000 tonnes (t) this week.

In the central region, the decrease was more pronounced at 11% w-o-w, while the southern territory saw a smaller drop, of approximately 7.4%.

Region-wise inventory

Central region: In the central region, scrap inventory decreased by 11% w-o-w to 391,000 t, primarily due to lower inventories at large companies.

Hyundai Steel's Incheon plant saw a decrease of approximately 7%, while the Dangjin plant experienced a decline of around 12% compared to the previous week. Additionally, Dongkuk Steel's inventory fell by 20%, and Hwanyang Steel's levels decreased by 5% w-o-w.

Southern region: In the southern region, inventory levels dropped by approximately 7.4% from last week, to 322,000 t.

Hyundai Steel's Pohang plant saw a decrease of around 8% w-o-w, while POSCO's inventory dropped by about 4%. Korea Special Steel's stocks dropped by 31%.

However, the combined inventory of Daehan Steel and YK Steel increased by approximately 1.6%.

Market update

The overall decrease in scrap inventory seems to be influenced by a reduction in the stocks of Dongkuk Steel (20% w-o-w) and Hyundai Steel (8% w-o-w), which had a significant impact. However, steel production volumes remained stable w-o-w.

A market participant stated, "The mood for a price increase in steel seems to have diminished compared to the start of the week, as production volumes remain low, and purchasing activity is sluggish. While the supply industry still expects a price hike, it may not materialise due to weak conditions in the product market. However, with a couple of business days left until next week, there remains a possibility that the sentiment for a price increase could persist."

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