SteelDaily: The cumulative ferrous scrap inventory at eight major South Korean steelmakers ended a two-week decline and rose to about 720,000 tonnes (t) in the first week of September, up 3.9% from 693,000 t the previous week.
Scrap iron inventories at major steelmakers nationwide
Region-wise inventory
By region, Central region inventories rose 4.3% w-o-w to 432,000 t from 414,000 t, while southern region stocks climbed 3.2% to 288,000 t from 279,000 t over the same period.
Market updates
This inventory increase is attributed to stock levels aligning with daily usage requirements.
Although scrap iron generation remains below average, steelmakers are reportedly maintaining stock levels through measures such as extending special zones and securing additional import volumes.
The industry anticipates that with the Chuseok holiday nearing and rising demand for funds, scrap steel suppliers will boost shipments to liquidate holdings, potentially lifting steel mill inventories and pushing overall inventory levels higher.
According to a market participant, “Current inventories are sufficient to support daily production without disruptions. However, this cannot be seen as a major surplus, and a supply-demand turning point may emerge by mid-September.”
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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