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.
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