South Korea: Hyundai Steel's share of imported scrap purchase continues to decline

South Korea's largest scrap consumer and major steelmaker, Hyundai Steel, has reported a drop in its share of total imported scrap arrivals after the adjustments made in its procurement strategy. The company's total share of imports this week was 14%, whereas the average share of imports till now in 2022 stands at 35%, as per SteelDaily.

Compared to the past, imports by Hyundai Steel are declining year after year: the company accounted for 59.8% of the share in 2019, 55.5% in 2020, and 42.3% in 2021.

From 3QCY'21 the total share of Hyundai Steel started to fall. A Hyundai Steel official stated: "In the past, it was true that Hyundai was in charge or responsible for a certain part of the scrap import market, but now it has turned to a policy of importing only appropriate quantities."

In contrast, other steel makers like Dongkuk's imported scrap share remained stable at around 20% of the total imports by South Korea. Despite price fluctuation and shortage of scrap, the company still maintained its share.

Domestic scrap market

Interestingly, major Korean mills will reduce its scrap purchase prices from 21 July, as per reports. Hyundai Steel and Dongkuk Steel will trim prices by KRW 10,000/t ($8/t). At present, buyers are preferring domestic material due to the decline in prices amid oversupply. So, there is no reason to turn towards the import market at the moment.

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