- South Korean scrap stocks steady, mills restart may pressure
- Central, southern regions show contrasting inventory
SteelDaily: The cumulative ferrous scrap inventory at eight major South Korean steelmakersend three-week slide, tightening supply-demand balance ahead of mill restarts. Inventory stood at around 793,000 tonnes (t), unchanged from the previous week.
Region-wise inventory
Regionally, the central region recorded a 1.8% increase to 493,000 t from 484,000 t, while the southern region saw a 3% decline to 300,000 t from 309,000 t.
Market updates
According to a market participant, “Although inventories remained low, the impact was limited by reduced factory operations. Nationwide scrap purchase price hikes also played a role in slowing further inventory declines.”
Another to a market participant, “While inventories could be preserved during the maintenance period, competition to secure material is expected to intensify once full-scale operations resume.” The source added that upward pressure on purchase prices could re-emerge as early as late August.
Additionally, steel mills in the metropolitan and southern regions are scheduled to resume operations sequentially starting this weekend, and inventories are likely to decline if stockpiled material cannot keep pace with consumption.
In contrast, dynamics in the central region appear different. The outlook there may shift depending on upcoming decisions regarding steelmakers currently facing potential construction license revocations, particularly those with a high concentration of construction-related orders.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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