South Korea: Ferrous scrap inventory falls 10% w-o-w

• Mills limit scrap buying amid expectations of high prices
• Slow construction activity weighs on steel production

SteelDaily: The cumulative ferrous scrap inventory at eight major South Korean steelmakers fell this week, reversing last week’s brief consolidation and sliding to the low 700,000-tonne (t) range. Inventory stood at around 719,000 t, down by 9.2% from 793,000 t in the previous week.

Region-wise inventory

By region, volumes in the central region fell by about 12%, dropping to 430,000 t from 493,000 t in the previous week. Meanwhile, the southern region declined 3.5% w-o-w, to 289,000 t from 300,000 t.

Market updates

According to a market participant, “With construction activity contracting, steel production has decreased. In addition, expectations of higher prices have curbed procurement, likely contributing to the decline in steelmakers’ inventories.”

Additionally, industry participants warn that the inventory decline could quickly unsettle the market. If supply does not recover to a stable level, steelmakers may struggle to maintain operations due to an uptrend in prices.

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