Scrap inventory at South Korea’s major steel mills is showing mixed trends, with the in-hand inventory level in the factories recorded at 725,000 t, up 19,000 t as against last week, or up by around 3%.
Dongkuk Steel’s scrap stock decreased by 1,000 t compared to the previous week. As a matter of fact, the company is struggling to make a balance between its supply and demand of scrap.
However, it is expected that its Incheon plant inventory level can surge towards the end of the month as a large US-made bus carrier comprising 25,000 t of scrap delivery is scheduled to arrive on 27 March.
POSCO’s scrap stock level remained stable for another week. Meanwhile, in the southern region, Korea Steel fell by 9% to lower than 40,000 t. YK Steel’s inventory moved slightly lower to 20,000-30,000 t.
In contrast, Hyundai Steel is increasing its scrap inventory due to the arrival of giant US motherships to its Incheon works. The stock at that plant increased by 40,000 t as against last week. Whereas the Daehan plant, which struggled with inventory shortage, showed a growth of 33% and is about to recover 20,000 t.
According to current observation, mills are trying to pile up inventory to overcome insufficient stock levels caused by high procurement prices.
A steel mill source said: “The price increase is intended to maintain market circulation. There is little stock left, so it is unlikely that the stock will increase if the price is raised.”
Note: This insight has been published as part of an article exchange agreement between SteelMint and SteelDaily.
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