- Steelmakers adjust output amid weak construction demand
- Inventory in central region falls, remains stable in the south
SteelDaily: The combined ferrous scrap inventory of eight major South Korean steel mills decreased by 26,000 t w-o-w to 609,000 t from 635,000 t in the previous week.
Domestic steelmaker’s scrap iron inventories have declined for the first time in two weeks. However, the change is minor, indicating a sideways movement within a limited range.
Inventory in the central region fell, whereas levels in the southern region stayed nearly unchanged from the previous week.
Region-wise inventory
Central region: The central region’s steel scrap inventory decreased by approximately 8.2% w-o-w to 268,000 t.
Hyundai Steel’s Incheon plant recorded a 1.3% increase in inventory, while Dongkuk Steel saw a nearly 8% decline. Hwanyoung Steel’s inventory remained unchanged, and Hyundai Steel’s Dangjin plant reported a 12.5% drop.
Southern region: The southern region’s steel scrap inventory fell by approximately 0.5% w-o-w to 341,000 t.
POSCO’s inventory fell by 1.3% w-o-w, while Hyundai Steel’s Pohang plant recorded a 2.3% incline. Additionally, Daehan Steel and YK Steel maintained stable inventories, and Korea Iron and Steel saw an 6.2% decrease.
Market update
As of March, the average inventory stands at 622,000 t-significantly lower than the five-year March average of 873,000 t. However, there is no indication of a supply shortage.
With product demand declining due to a weakening construction market, steelmakers are maintaining optimal production levels to align with current demand.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
Leave a Reply