This week, the combined steel scrap inventory held by the top eight South Korean steel producers stood at 899,000 tonnes (t), marking an increase of approximately 3% compared to 873,000 t in the preceding week.
Inventory growth was observed across the central and southern regions, with the central region experiencing an even steeper rise, attributed to ongoing factory maintenance.
Region-wise inventory
Central region: Ferrous scrap inventory in the central region reached 498,000 t this week, reflecting a 3.3% rise compared to the previous week. Hyundai Steel’s Incheon plant, known for its extensive factory maintenance, recorded the highest growth, rising 8.3%. Meanwhile, Hyundai Steel’s Dangjin plant experienced a substantial increase of 6.6%. Conversely, Dongkuk Steel and Hwanghan Steel saw declines of 2.3% and 2%, respectively.
Southern region: In the southern region, which had recently implemented price reductions, iron scrap inventory rose by 2.5% w-o-w, reaching 401,000 t. Among the companies, Daehan Steel and YK Steel collectively saw their inventory rise 8.8%, while POSCO witnessed a 3.3% increase. However, Hyundai Steel’s Pohang Plant and Korea Steel maintained their inventory at the same level as the previous week.
Despite the sizable inventory of rebar, which is nearing 400,000 t and showing no signs of decline, the anticipated impact on demand for iron scrap is expected to be significant.
With market conditions remaining sluggish even throughout March, a month typically considered the peak season, little relief can be anticipated in April.
Note: This article has been published in accordance with an article exchange agreement between SteelDaily and BigMint.