South Korea: Ferrous scrap inventory declines for 7th straight week

• Steel scrap inventory dips fuelling price hikes
  
  
• Supply tightens as brokerage stocks run low
  
  

SteelDaily: The combined ferrous scrap inventory of eight major South Korean steel mills fell w-o-w to 617,000 t, marking the seventh consecutive week of decline.

Domestic steelmakers' scrap iron inventories have declined slightly from last week. To counter seven consecutive weeks of decreasing stock, the industry is increasing purchase prices to replenish supplies.

The central region's steel scrap inventory fell by approximately 6% from the previous week, while the southern region saw a 5% increase over the same period.

Region-wise inventory

Central region: In the central region's steel scrap inventory declined by approximately 6% from the previous week, reaching 283,000 t.

Hyundai Steel's Incheon plant saw a 9% decline in inventory. Meanwhile, Dongkuk Steel's inventory dropped by 25%, Hwanyang Steel's levels decreased by 15% w-o-w, and Hyundai Steel's Dangjin plant recorded a roughly 9% increase.

Southern region: The southern region's steel scrap inventory rose by approximately 5% from the previous week, reaching 334,000 t.

POSCO's inventory increased by 9% w-o-w, while Korea Iron and Steel's total inventory surged by 25% during the same period. Meanwhile, the combined inventory of Hyundai Steel's Pohang plant, Daehan Steel, and YK Steel remained unchanged.

Market update

Steelmakers, facing low inventory levels despite weak product demand, have raised purchase prices to secure scrap steel. Consequently, the price increases that began on the 10 Feb'25 have now spread nationwide.

A market participant stated, "Most of the supply from brokerage firms appears to have already entered the market. Additional volume will likely come from small and medium-sized companies" and, "Supply is expected to increase only when price hike expectations ease or signs of a price decline emerge."

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