- Inventory in central region rises, south sees drop
- Market outlook hinges on steel demand recovery
SteelDaily: The combined ferrous scrap inventory of eight major South Korean steel mills increased by 4% w-o-w to 635,000 t from 611,000 t in the previous week.
Domestic steelmakers saw their scrap iron inventory rise last week as well. However, despite the start of the peak season, demand was weak, keeping expectations for the March market low.
Inventory in the central region increased, while the southern region saw a slight decline.
Region-wise inventory
Central region: The central region’s steel scrap inventory increased by approximately 12% w-o-w to 292,000 t.
Hyundai Steel’s Incheon plant saw a 3% rise in inventory. Meanwhile, Dongkuk Steel’s inventory nearly doubled, Hwanyang Steel’s stocks decreased by 10% w-o-w, and Hyundai Steel’s Dangjin plant saw relatively stable levels.
Southern region: The southern region’s steel scrap inventory fell by approximately 2.2% w-o-w to 311,000 t.
POSCO’s inventory rose w-o-w, while Hyundai Steel’s Pohang plant recorded a 6% decline. Additionally, Daehan Steel and YK Steel maintained stable inventories, and Korea Iron and Steel saw an 8% increase.
Market update
A recovery in steel demand will be the key factor determining the future trajectory of the scrap market, as it is closely tied to mills’ inventory levels and shipment volumes. Without improvements in the construction and manufacturing sectors, the steel scrap market is expected to remain constrained.
A market participant stated, “The build-up of scrap inventory has become a pressing issue amid weak end-product demand and declining steel sales. Scrap inventory levels are relevant only when the product market is somewhat active, but the current downturn appears severe.”
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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