- Central region inventories fall, southern zone sees rise
- Reduced scrap collection tightens market availability
SteelDaily: The cumulative ferrous scrap inventory at eight major South Korean steelmakers declined this week in late October to about 723,000 tonnes (t), down 5.8% w-o-w from 767,000 t.
The main reason for the inventory drop is the slow replenishment following the Chuseok holidays.
Domestic steelmakers’ scrap inventories fell for the second consecutive week, extending the downward trend that began during the early October holidays amid reduced receipts.
Region-wise inventory
This week, the central region recorded 393,000 t, decreasing by 54,000 t from the previous week, while the southern zone saw a rise to 330,000 t compared to the previous week.
Market updates
While steelmakers continue to procure scrap to sustain operations, inventories are gradually decreasing amid ongoing supply chain challenges. This situation has widened the imbalance between scrap grades, as the limited availability of heavy and high-quality ferrous scrap has impacted the overall grade mix and quality.
A market participant observed, “Reduced activity at demolition and construction sites has constrained scrap collection, tightening supply.”
Another participant stated that growing grade-wise inventory disparities among factories have led to increased inquiries for selective purchases and contract price adjustments. However, this activity remains concentrated in specific grades and does not reflect a broad-based rise in overall market procurement.
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