South Korea: Steel mills' scrap inventory slightly down w-o-w

Ferrous scrap inventories of major South Korean steelmakers decreased by only 8,000 tonne (t) or 1% w-o-w as on 18 April. Volumes totaled 931,000 tonnes (t).

Considering the fact that most steelmakers control the time and grade of steel, the amount of reduction is very small. Although each steelmaker is implementing strict warehousing control, their stock holdings rarely decrease.

Region-wise inventory status

Central region's inventory status: Inventories in the central region decreased by 1.4% from the previous week, despite inventory increases at Dongkuk Steel and Hwanyoung Steel, as Hyundai Steel's inventory decreased in both Incheon and Dangjin.

Steelmakers in the central region, Hyundai Steel and Dongkuk Steel, are still placing warehousing restrictions, and Korea Steel and Daehan Steel are also implementing
warehousing controls due to excessive in-house inventory.

However, despite the decline, a larger amount of steel scrap than usual is still entering the steelmaker's yard.

Inventories at all steelmakers except Hyundai Steel increased. Hyundai Steel's inventory decreased in Incheon, Pohang, and Dangjin. Hyundai Steel's inventory decreased by 5.85% from the previous week.

Inventories at Hyundai Steel's Incheon and Dangjin decreased, while those at Dongkuk Steel and Hwan Steel increased.

In particular, Hwan Steel's inventory increased by 18.2% compared to the previous week.

Dongkuk Steel's inventory increased by 2.94%. Inventories at southern steelmakers are the same as in Jeonju.

Similar to the central region, Hyundai Steel Pohang's inventory decline coincided with other steelmakers' inventories increasing.

YK Steel's inventory increased by 10% compared to the previous week, while Korea Steel and Daehan Steel's inventories increased by 7.7% and 3.9%, respectively.

Posco's inventory increased by 0.8% from the previous week.

Busan-Gyeongnam region inventory status: Since last week, a downward trend in prices has become visible, and inventory is on a slight decline. Four rebar steelmakers in the Busan-Gyeongnam region received 12,600 t of steel scrap last Friday.

In particular, Daehan Steel and YK Steel receive more than 3,000 t of scrap per day.

Normally, when the combined total of the four companies is between 10,000 and 11,000 t, Daehan Steel and YK Steel are still receiving a large amount if the warehousing level of around 2,500 t is considered an appropriate level.

The industry predicts that one more price cut will continue this week, based on abundant inventory and high stocking volume.

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