South Korea: Hyundai Steel's scrap consumption slows down amid strike

South Korea's largest steel producer, Hyundai Steel's Dangjin works' scrap procurement and consumption have reduced to half of their usual level, as per a SteelDaily report. The strike at the plant, which started from October 2022, has adversely affected the demand of scrap in the factory.

According to Hyundai's suppliers, the amount of scrap allocated to the Dangjin steel works dropped this week. The plant buys around 8,000-10,000 t of scrap daily from the domestic market. The volumes have decreased to 4,000-5,000 t per day.

Although the company had stocked up on inventory, despite the strike, recently it began to adjust the material. Due to labour management conflict the plant has entered a phase where controlling of stocks is required.

The company is moving its scrap inventories from Dangjin mill to Incheon and Pohang works. However, there too the consumption is slow due to the ongoing strike.

Currently, the Incheon plant is repairing a 60-t EAF till tomorrow followed by repairing of a 120-t EAF for 28 days starting from 24 October. Since the strike is going on, it is highly likely that quota regulation would spread from Dangjin to Incheon in the near term.

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