South Korea: Steelmakers struggle to maintain inventories amid scrap shortage

South Korea's largest scrap consumer and major steelmaker is struggling to replenish scrap stocks due to low supply. As of 12 October, 111,518 t of imported scrap was unloaded and anchored at the major ports, according to a SteelDaily report.

• Hyundai Steel: For Hyundai Steel, a total of 11 small cargoes are reportedly arriving, including a cargo that will be unloaded at the Incheon unit, bringing the company's total ferrous scrap import to 45,261 t. Some of them are small 2,000 t cargoes of ferrous scrap from Japan.
  
  
• SeAH Besteel: While other steel majors are experiencing below-workable level conditions, SeAH Besteel will continue to function at its normal level with total imports for this instance at 16,257 t.
  
  
• Dongkuk Steel: The predicted volume of imported scrap for Dongkuk Steel is 17,000 t, which is 10,000 t below than typical level. However, the Pohang works have not made any declarations regarding the import volume, an additional 2,000 t out of the 17,000 t are being unloaded at the Dangjin works.
  
  

Port updates

Busan port reported 2,000 t lower volumes than usual and the cargo count at port for arrival is six with estimated arrival on 27 Oct, excluding a cargo which is being unloaded till now, and all of them to be supplied to Daehan Steel. The company has received 9,000 t at Busan port till now. Similarly, Busan port also reported 2,000 t of YK Steel followed by 3,000 t of other companies. However, Mason port received a larger number than usual with 8,500 t.

As a result of a shift in market direction triggered by higher prices, trade volumes fell in October. The lower-than-average ferrous scrap demand and supplies to steelmakers is a problem to reckon with.

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