South Korea: Imported scrap arrival increases by 48,000 t w-o-w

With the resumption of imports of large mother ships by POSCO, the number of ships entering the ports increased significantly this week. A total of 159,950 tonne (t) of scrap arrived at major ports this week, an increase of 48,000 t from the previous week.

Company wise imports

• POSCO: POSCO's resumption of imports of large mother ships is the most remarkable development this week. POSCO reported 53,200 t of scrap in both Pohang and Gwangyang, including 35,200 t of scrap loaded on ships departing from Auckland on the west coast of the US. HBI also brought in 35,000 t. It is the first time in 10 months since August 2022 that POSCO has imported more than 50,000 t of scrap.
  
  
• Hyundai Steel: Hyundai Steel reported 18,500 t at Incheon Port, 2,000 t at Dangjin, and 20,250 t at Pohang. In total, 40,750 t of scrap arrived at these major ports. This is not insignificant, in fact, higher than the average of this year. However, about 9,000 t lower than last week.
  
  
• Seah Besteel: Seah Besteel brought in 26,500 t to Gunsan Port. During the month of May, the volume of imports was relatively small, but within a month, the port volume was restored to 20,000 t. The company, which recently carried out a short special purchase due to a decrease in import volume, is said to have escaped a brief supply disruption through the special purchase and recovery of import volume. The average port arrival in 2023 is 21,500 t, maintaining the most consistent port arrivals among major steelmakers.
  
  
• Others: Dongkuk Steel brought in 21,500 t, similar to last week, through Incheon Port. Masan Port received 7,000 t of scrap from Korea Steel, and Daehan Steel and YK Steel brought in 8,000 t and 3,000 t, respectively, from Busan.
  
  

Grade wise imports

There is a clear increase in high-grade scrap, such as shindachi and shredded. 16,500 t of shindachi and 18,000 t of shredded grades of scrap have been reported. Shindachi accounts for 10.3% of the total volume, and shredded accounts for 11.3% of the total volume. H2 accounted for 14.8% of the total at 23,750 t. HS and HMS are 1.9% and 3.1%, respectively.

Outlook: Demand for scrap is expected to decline as electric arc furnace steelmakers have begun to cut power factors after June. These steelmakers' scrap inventory and the daily warehouse volume are decreasing, suggesting that prices will bottom out in the near-term.

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