South Korean steelmakers’ scrap inventories rise after eight weeks

• Pohang inventories increased amid Hyundai Steel maintenance shutdown
• Rebar steelmakers’ scrap inventories fell to record lows

South Korean steelmakers’ scrap inventories reversed course and increased for the first time in eight weeks, rising by 9,000 t (1.2%) w-o-w to around 791,000 t. However, market conditions remained mixed across regions and product segments, with the inventory increase mainly concentrated among plate and specialty steelmakers, while rebar producers continued operating with historically low stock levels. Market participants noted that despite the weekly increase, overall inventory growth remained limited due to uneven scrap inflows and continued tight availability.

Region-wise inventory levels

Pohang region: Inventories recorded the sharpest increase, rising by 20,000 t (11.7%) w-o-w to 191,000 t. The increase was largely attributed to Hyundai Steel’s Pohang plant temporarily suspending electric furnace operations for maintenance, resulting in lower scrap consumption.

Incheon region: Stocks declined by 3,000 t (1.7%) to around 169,000 t amid continued scrap usage and relatively lower inflows.

Central region: Inventories at mills in the region dropped by 11,000 t (4.3%) w-o-w to 245,000 t, reflecting stronger operating rates and ongoing consumption.

Busan & Gyeongnam region: Stocks declined by 2,000 t (2.1%) to around 93,000 t, indicating continued inventory drawdowns among southern mills.

Product-group-wise trends

Inventories at plate and specialty steelmakers increased by 8,000 t (3.1%) w-o-w to 263,000 t, leading the overall inventory rise during the week. In contrast, inventories at bar and shape steelmakers, including Hyundai Steel, remained largely stable, rising only marginally by 1,000 t (0.2%) to around 528,000 t.

Meanwhile, inventories at five specialised rebar producers, excluding Korea Steel, dropped to just 88,000 t, marking the lowest level recorded historically for the segment.

Company-wise trends

Among the 11 steelmakers surveyed, four companies reported inventory increases, three recorded declines, while four maintained stock levels similar to the previous week. Inventory gains were mainly observed among large steelmakers and specialty steel producers, whereas rebar manufacturers continued witnessing stock reductions.

Market participants noted that aggressive scrap purchase price hikes by major mills helped stabilise inventories at some companies. However, cautious procurement by rebar producers continued resulting in historically low inventory levels, while near-term scrap availability concerns persisted across the domestic market.