- Scrap inventory at major mills rises over 11% w-o-w
- Steelmakers face pressure as product sales stagnate
SteelDaily: The combined ferrous scrap inventory of eight major South Korean steel mills increased by approximately by 11.2% to 853,000 t this week from 767,000 t last week.
Steelmaker’s scrap iron inventory rose for the third consecutive week as product sales remained sluggish. With scrap stockpiles building amid ongoing price cuts, the pressure on the industry continues to mount.
Accordingly, inventories in both the central and southern regions edged up w-o-w. However, of the two, the central region registered a higher uptick.
Region-wise inventory
Central region: The central region’s steel scrap inventory increased by approximately 15% w-o-w to 435,000 t.
Southern region: The southern region’s steel scrap inventory decreased by approximately 7.4% w-o-w to 418,000 t.
The increase in inventory seems to be driven by additional price cuts announced by most steelmakers at the end of this week, following earlier purchase price reductions on the 3 and 4 of March across all regions.
Market update
A market participant noted, “With this being the second consecutive price cut, it appears that steelmakers are aiming to maintain the overall market trend”, adding, “while some companies like POSCO have yet to follow suit, a limited response may still occur depending on how the situation unfolds.”
Another market participant voiced concern, stating, “Inventory levels appear to be rising steadily, but it’s still unclear whether this reflects new inflows or the sudden release of previously accumulated stock. The entire market feels like it’s on edge, and if a third consecutive price cut occurs, there’s a real risk of the market freezing once again,”
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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