- Inventories rise on non-operation of production units
- Central region’s stocks up 3%, south sees 1.5% uptick
SteelDaily: The combined ferrous scrap inventory of eight major South Korean steel mills increased by 22,000 tonnes (t) to 631,000 t this week from 609,000 t in the previous one.
Domestic steelmakers’ ferrous scrap inventories increased, driven by a rise in deliveries of the same. This growth is primarily due to the non-operation of production units, though there has also been a reduction in special purchases, which refer to occasional or irregular scrap procurement outside of regular purchasing schedules. The water level in the country’s inland waterways has also risen, indicating a higher volume of scrap being delivered.
Accordingly, inventories in both the central and southern regions edged up w-o-w. However, of the two, the central region registered a higher uptick.
Region-wise inventory
Central region: The central region’s steel scrap inventory increased by approximately 3% w-o-w to 285,000 t.
Hyundai Steel’s Incheon plant recorded a 6% rise in inventory, while Dongkuk Steel saw a nearly 7% increase. Hwanyoung Steel’s inventory grew significantly by 22%, whereas Hyundai Steel’s Dangjin plant experienced a 5% decline.
Southern region: The southern region’s steel scrap inventory rose by approximately 1.5% w-o-w to 346,000 t.
POSCO’s inventory decreased by 3% w-o-w, while the combined inventory of Daehan Steel and YK Steel grew 3%. Korea Iron and Steel kept its inventory stable, whereas Korea Special Steel recorded a notable 17% increase.
Korea Special Steel announced that it would halt all special purchases from 20 March 2025, which has prompted nearby steel companies to follow suit. As a result, deliveries in the distribution industry have increased, driven by reduced expectations of further price hikes.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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