- Busan-Gyeongnam leads scrap inventory growth
- YK Steel shutdown lifts southern inventories
SteelDaily: The cumulative ferrous scrap inventory at eleven major South Korean steelmakers rose for the first time in five weeks, by 17,000 tonnes (t) (1.9%) to 914,000 t from the previous week. While overall stocks improved, inventory trends varied across regions and industry segments.
Region-wise inventory
Southern region: The Busan-Gyeongnam region recorded the sharpest rise of 27,000 t (23.5%) to 142,000 t, nearing early-December levels. The Pohang region also posted a moderate increase of 5,000 t (2.3%).
Central region: Scrap inventories in the central region declined by 10,000 t (3.1%), while Incheon remained largely unchanged w-o-w.
By industry, bar steelmakers recorded a notable increase of 4.6% in inventories to 590,000 t. In contrast, plate and special steel producers saw stocks fall by 2.7% to 324,000 t, reflecting uneven procurement activity across segments.
Factors influencing inventory
The inventory build in the Busan-Gyeongnam region was mainly driven by the shutdown of YK Steel, which reduced scrap consumption. In addition, the release of additional contracts by major steel mills led to higher inflows, further supporting stock accumulation during the week.
Market impact
Market participants stated that the recent rise in inventories may ease short-term procurement pressure. However, regional imbalances and uneven production levels continue to shape scrap buying strategies, suggesting that price movements will remain sensitive to changes in mill operations and demand conditions.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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