- Mill restarts accelerate scrap consumption rates
- Low winter generation keeps inventories under pressure
SteelDaily: Cumulative ferrous scrap inventories at 11 major South Korean steelmakers fell to 929,000 tonnes (t), marking a 5% (53,000 t) w-o-w decline, according to SteelDaily. The drawdown was primarily driven by the resumption of operations at Hyundai Steel and Dongkuk Steel, following recent maintenance periods and temporary plant shutdowns, which led to a sharp rise in scrap consumption.
On a regional basis, inventories in Incheon and Pohang-key production hubs for Hyundai Steel and Dongkuk Steel-recorded notable declines of 13% and 9%, respectively, compared with the previous week. In contrast, scrap stocks in the central region and Busan/Gyeongnam were largely stable or posted marginal increases, reflecting comparatively steadier operating conditions in those areas.
Market updates
Scrap generation remains seasonally low at the start of the year, in line with typical winter patterns. However, higher operating rates, supported by improved rebar exports and steady downstream demand, have accelerated scrap usage across steel mills. As a result, inventories have now declined for two consecutive weeks, falling back to levels last seen in early November.
Looking ahead, market participants expect inventories to remain under pressure in the near term. Expectations of firmer scrap prices, combined with reduced winter scrap generation, are likely to limit replenishment. Unless operating rates ease or collection improves meaningfully, steelmakers may continue to draw down existing inventories in the weeks ahead.
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