South Korea: Ferrous scrap inventory drops for 2nd consecutive week

• Scrap inventory down 4% w-o-w to 809,000 t
• Decline linked to April holiday price drops

SteelDaily: The combined ferrous scrap inventory of eight major South Korean steel mills fell by approximately 4% to 809,000 tonnes (t) this week from 845,000 t last week. This marks the second weekly decline in May.

Region-wise inventory

Central region: The central region’s steel scrap inventory decreased by approximately 18% w-o-w to 422,000 t.

Southern region: The southern region’s scrap inventory decreased by approximately 6% w-o-w to 361,000 t.

The decline in the central and southern regions is attributed to the sharp drop in purchase prices and reduced inventory levels during the April holiday period.

Market update

A market participant noted, “In April, steelmaker’s purchase prices were low, leading many to believe that stocking up would incur losses. From the supplier’s perspective, there was a tendency to limit volumes, and the reduced vehicle operations before and after the holiday period also appeared to have influenced the situation.”

Meanwhile, the steel industry is encouraging supply by raising purchase prices to minimise supply-demand disruptions, while suppliers are adjusting volumes based on their respective market positions.

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