South Korea: Scrap inventory at major mills record modest uptick
...
This week, the combined steel scrap inventory held by the top eight South Korean steel producers stood at 873,000 tonnes (t). This marks a modest increase of approximately 1,000 t compared to 872,000 t in the preceding week.
Region-wise inventory
Central region: Steelmakers in the central region reported an inventory of 482,000 t, reflecting a 0.4% increase w-o-w. Breaking it down by company, Hyundai Steel's Incheon plant saw a decrease of 7.7%, whereas its Dangjin plant experienced a 7.1% increase. Meanwhile, Dongkuk Steel's inventory dipped 0.8%, while Hwanghan Steel witnessed a 2% decrease in inventory levels.
Southern region: In the southern region, it was seen that inventory stood at 391,000 t, marking a rise of 0.8% compared to the previous week.
Breaking it down by company, the combined inventory of Daehan Steel and YK Steel saw a notable increase of 7.14% compared to the previous week, while POSCO registered a modest uptick of 0.6%. Conversely, Korea Steel witnessed a decrease of approximately 2% in inventory levels. Hyundai Steel's Pohang plant maintained an inventory level consistent with that of the previous week.
The second quarter typically witnesses a surge in demand for iron scrap alongside major products like rebar and H-beam steel. However, this year presents a slightly altered scenario. Contrary to expectations, product demand did not materialise as anticipated at the onset of March, marking the beginning of the peak season. Consequently, product inventory is poised to enter the second quarter without experiencing significant depletion.
There exists a possibility that the surge in demand for iron scrap during the peak season might not reach the levels observed in previous years. Specifically, if product demand continues to lag behind expectations into the second quarter, the prospects of an upward trajectory in both iron scrap demand and prices could diminish even further.
Note: This article has been published in accordance with an article exchange agreement between SteelDaily and BigMint.
