SteelDaily: This week, the combined ferrous scrap inventory of eight major South Korean steel mills reached 689,000 tonnes (t), marking a slight decline of 0.8% from the previous week’s 695,000 t, but the difference was not significant enough to be meaningful. Notably, the drop in inventory levels in the central region was more pronounced than in the southern region compared to the previous week.
Region-wise inventory
Central region: In the central region, steelmaker’s scrap inventory levels dropped by 4.1%, reaching 349,000 t as compared to 364,000 t in the previous week. In terms of companies, Hyundai Steel’s Incheon Plant experienced a 7.6% as the plant is scheduled for major maintenance at the end of the month. In contrast, Dangjin plant, with its relatively low production costs, experienced a notable 10% decrease.
Southern region: In the southern region, the ferrous scrap inventory stood at 340,000 t, marking a 2.7% increase from last week’s 331,000 t. The increase in inventory is attributed to the upward price adjustments resulting from special and contract purchases made after the completion of major maintenance. By company, Hyundai Steel Pohang Plant’s inventory decreased by 10%, POSCO’s scrap inventory dropped by 1.4% from the last week.
The combined inventory of Daehan Steel and YK Steel rose by 40% and Korea Iron and Steel also increased by more than 40% compared to the previous week.
Although inventory levels were falling in the central region, the southern region experienced an increase. This upward trend in inventory is particularly evident among companies that have raised their prices after their factories were closed for extensive maintenance.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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