South Korea: Scrap inventories rise 5% w-o-w on accelerated deliveries, mill disruptions

• Suppliers accelerate deliveries before price cut on 13 Oct’26
• Rebar mills record sharp inventory gains amid operational disruptions

South Korean steelmakers’ scrap inventories increased by 47,000 t (4.7%) w-o-w to 1.052 mnt as of 13 October, reaching their highest level since the third week of September. Inventories rose at 10 of the 11 steelmakers surveyed, with only POSCO recording a decline. The increase was primarily driven by scrap suppliers accelerating deliveries ahead of a price reduction on 13 October, while operational disruptions at Hankook Steel further contributed to inventory accumulation.

Product-group-wise trends

Inventories at bar and shape steelmakers, including Hyundai Steel, increased by 50,000 t (7%) w-o-w to 765,000 t, accounting for most of the overall rise. Meanwhile, stocks at plate and speciality steelmakers declined by 3,000 t (1%) to 287,000 t. Inventories at five rebar-specialist producers surged by 29,000 t (18%) to 190,000 t, reaching their highest level so far this year.

The increase among rebar producers was largely driven by Hankook Steel, where a transformer failure and subsequent fire forced a suspension of electrical operations and scrap consumption. Although scrap purchases were halted from 12 to 14 October, deliveries received before the disruption accumulated at the facility. The company’s inventory rose by 14,000 t in one week to a yearly high, accounting for nearly half of the total increase among the five rebar specialists.

Region-wise inventory trends

Scrap inventories increased across all four major regions. Busan and Gyeongnam recorded the largest weekly increase, rising by 26,000 t (15.2%) to 197,000 t, the highest level this year. Korea Steel accounted for more than half of the regional total, with its operational disruption contributing significantly to the increase.

The Dangjin and Honam regions recorded an increase of 11,000 t (2.6%) w-o-w to 439,000 t. Incheon inventories rose by 6,000 t (3.3%) to 189,000 t, while Pohang stocks increased by 4,000 t (1.8%) to 227,000 t.

Outlook

The recent inventory build-up reflects accelerated scrap deliveries ahead of the price reduction and temporary disruptions to steelmaking operations rather than a broad-based improvement in scrap consumption. With most pre-price cut deliveries already completed, inventory growth is expected to slow significantly next week as incoming shipments decline. However, stock trends in Busan and Gyeongnam will depend on when Korea Steel resumes electric furnace operations. Even after purchasing restarts, inventories may remain elevated until scrap consumption returns to normal levels.

Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.