SteelDaily: The cumulative ferrous scrap inventory at eight major South Korean steelmakers declined for a second consecutive week, easing from just above 700,000 tonnes (t) last week to around 690,000 t. Inventory stood stood at around 693,000 t in the fourth week of August, down 3.6% from 719,000 t the previous week.
Region-wise inventory
By region, central inventories dropped 3.7% to 414,000 t from 430,000 t last week, while southern inventories declined 3.5% to 279,000 t from 289,000 t.
Market updates
According to a market participant, noted that “while current inventories are not yet low enough to disrupt production, they remain insufficient. This has prompted steelmakers to sustain purchases through imports or by extending supply from special zones.”
Additionally, Inventory levels, though varying by steelmaker, are estimated to be slightly below or near daily consumption. The situation may hold for now, but overall stability remains uncertain.
The industry expects declining inventories to act as a short-term driver for market prices. If supply recovery lags, steelmakers may face higher operating pressures and renewed upward pressure on scrap purchasing costs.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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