South Korea: Scrap arrivals rise sharply w-o-w on higher demand from flat steel producers

Scrap arrivals into South Korea improved significantly to 136,000 tonnes (t) this week in comparison with 52,158 t on 17 August, 2023, a whooping rise of 161%. POSCO, Hyundai Steel, and Dongkuk Steel were the major buyers this week. It is to be noted that new scrap arrivals are being sourced by flat steel producers recently as long steel producers are not keen at the moment. Flat steel producers are diverting their production to plates, as demand for plates is firm.

Grade-wise- South Korean mills have barely imported shredded scrap this week, while imports of Shindachi accounted for 3% of total arrivals. HS volumes were around 4,000 t, while HMS stood at 25,000 t.

Company-wise sourcing

Hyundai Steel: Hyundai Steel brought a total 0f 43,500 t of new iron scrap this week, higher by 21,142 t or 94% in comparison with 22,358 t on 17 August. Out of total new scrap arrivals, 29,000 t was brought from Incheon, 4,500 t from Dangin and 10,000 t from Pohang. Notably, about 15,000 t (out of 29,000 t) that arrived at Incheon port was Russian-origin HMS scrap.

Dongkuk Steel: Dongkuk Steel, a major steel producer in Korea, has reportedly sourced all its new scrap arrivals from Incheon port. A total of 44,500 t of new iron scrap was brought in this week, higher by 27,200 t than last week. A major chunk of 35,000 t came from Australia, followed by 7,500 t from Russia and 2,000 t from Japan.

POSCO: Steel giant POSCO has significantly raised its new scrap arrivals since last week. Total new iron scrap that POSCO imported this week stood at 48,000 t versus 4,000 t on 17 August. The company sourced 10,000 t from Pohang and 38,000 t from Gwangyang. About 32,000 t of new iron scrap, out of 38,000 t that landed on Gwangyang, was imported from the US.

As per the projection that scrap demand won't rise post-September, it appears that reliance on domestic scrap could balance supply and demand.

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