This week, the iron scrap inventory among the eight major South Korean steel producers remained steady at 798,000 tonnes (t), up by a mere 1% from the previous week. While certain steel manufacturers continue to undergo significant repairs, others have resumed operations following the completion of major maintenance work. Consequently, it appears that the growth in inventory has come to a standstill for now.
Notably, both the central and southern regions maintained similar inventory levels compared to the previous week.
Region-wise inventory
Central region: In the central region, steelmakers reported an inventory of 409,000 t, reflecting a slight decrease of approximately 1,000 t from the previous week. Each company exhibited its own distinct patterns. Hyundai Steel’s Incheon and Dangjin factories experienced a decrease of 2.6% compared to the previous week.
Southern region: In the southern region, the inventory stood at 389,000 t, marking a marginal decline of 0.3% from the previous week. Notably, the combined inventory of Daehan Steel and YK Steel saw a notable increase of 3.7% compared to the previous week. Korea Steel’s inventory surged by 20%, while Korea Special Steel, which completed repairs shortly after the holidays, witnessed a decrease of 6.8% compared to the previous week.
Additionally, POSCO, which typically maintains a larger inventory of iron scrap, decreased by 4.8% compared to the previous week as it commenced inventory adjustments. Within the industry, significant repairs are underway at Korea Steel, scheduled to conclude on the 21 February, as well as at Hyundai Steel’s 90-t electric furnace (until 26 June) and Dongkuk Steel’s Incheon plant’s 100-t electric furnace (starting on the 26 February). Observers are keenly monitoring how these developments will impact market dynamics.
Meanwhile, it has been observed that the daily intake of steel mills in the southern region has not recovered since dropping below 10,000 t since mid-February.
Note: This article has been published in accordance with an article exchange agreement between SteelDaily and BigMint.