South Korea: Ferrous scrap inventory climbs 5% w-o-w on pre-holiday stockpiling

• Scrap inventories across 8 ports rise for 5th straight week
• Korean steel mills prioritise inventory accumulation

SteelDaily: The cumulative ferrous scrap inventory at eight major South Korean steelmakers rose for the fifth straight week in late September to about 856,000 tonnes (t), up 5% w-o-w from 815,000 t.

Although the pace of buildup slowed compared with the prior week, mills continued stockpiling amid concerns over potential price declines and a preference to secure material ahead of the holiday period.

The increase was slower than the 6% gain recorded the previous week, but the five-week streak underscores suppliers’ continued dependence on steel mills.

Region-wise inventory

This week, the central region recorded 483,000 t, rising over 20,000 t from the previous week, while the southern region remained steady at 340,000 t.

Market updates

Imports from key suppliers, including Japan, continued to build. In September, general-purpose steel scrap imports exceeded 150,000 t – more than twice August’s volume-and more southern-region steelmakers are now considering Japanese scrap.

Overall, scrap inventories increased for the fifth consecutive week, exceeding 850,000 t. The rise was driven by pre-holiday stockpiling, with steelmakers securing supply despite price cuts, while suppliers continued active shipments amid concerns of further declines.

A market participant commented that “while scrap steel prices are stabilising amid a downward trend, most steelmakers continue prioritising inventory accumulation.”