- South Korea’s scrap inventories rise after weeks of declines.
- Dongkuk Steel shutdown drives sharp Incheon stock build.
SteelDaily: Scrap inventories at eleven major South Korean steelmakers increased for the first time in several weeks, rising by about 30,000 t (3.5%) from the previous week. While overall stocks moved higher, inventory changes varied across regions and companies.
Region-wise inventory
Incheon reported the sharpest rise, with inventories up 10.9% or around 14,000 t, driven by a near-doubling of stock at Dongkuk Steel following the shutdown of its Incheon Works in late January. The central region saw a moderate increase of about 7,000 t (2.3%), although levels at SeAH Besteel declined, limiting overall growth. The Busan-Gyeongnam region also posted a 4.1% rise of roughly 5,000 t.
By industry, long-product EAF steelmakers, including Hyundai Steel, recorded the strongest increase of about 30,000 t, taking inventories 5.5% higher to 572,000 t. Plate and special steel producers such as SeAH Besteel, POSCO and SeAH Changwon Integrated Special Steel saw inventories remain flat week-on-week.
Factors influencing inventory
The rise in the Incheon region was largely attributed to the shutdown at Dongkuk Steel, while higher arrivals from previously booked contracts supported accumulation across other regions. Easing supply tightness and reduced consumption at select mills also contributed to the inventory build during the week.
Market impact
Market participants noted that the increase in inventories may temporarily ease procurement pressure. However, uneven stock levels across regions and varying production rates continue to influence scrap purchasing patterns, keeping market sentiment sensitive to changes in mill operations and demand conditions.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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