- Distributors release more volumes amid price peak expectations
- Restart of Hyundai Steel’s plant drives Pohang stock growth
SteelDaily: South Korean steelmakers’ scrap inventories rose for a third consecutive week, increasing by 53,000 t (6.4%) w-o-w to 884,000 t as of 9 June. The increase was driven by distributors releasing more scrap volumes into the market amid expectations that prices may be nearing a short-term peak, while price hikes by some steelmakers also encouraged sales. However, inventory gains were concentrated among major steelmakers, and stocks at five major rebar producers declined slightly.
Region-wise inventory levels
Pohang region: Inventories rose by 19,000 t (9.3%) w-o-w to 223,000 t, supported by stock accumulation at Hyundai Steel and Dongkuk Steel ahead of higher scrap consumption following the restart of Hyundai Steel’s Pohang operations.
Incheon region: Stocks increased by 16,000 t (9.3%) w-o-w to around 188,000 t, reflecting stronger scrap inflows at major mills in the region.
Central region: Inventories rose by 20,000 t (7.7%) w-o-w to approximately 279,000 t despite continued operations at mills including SeAH Besteel, Hyundai Steel, and Hwanyoung Steel.
Busan & Gyeongnam region: Stocks declined by 3,000 t (3%) w-o-w to around 97,000 t, indicating continued inventory drawdowns among southern steelmakers.
Product-group-wise trends
Inventories at bar and shape steelmakers rose by 48,000 t (8.5%) w-o-w to 611,000 t, accounting for most of the weekly increase, while stocks at plate and speciality steelmakers increased marginally to 273,000 t.
Meanwhile, inventories at five specialised rebar producers declined by 2,000 t to 94,000 t, indicating that stock growth remained concentrated among larger mills.
Company-wise trends
Among the 11 steelmakers surveyed, inventories increased at four companies and declined at four, with gains concentrated at Hyundai Steel, Dongkuk Steel, and POSCO. Meanwhile, inventories at smaller producers remained under pressure, with SeAH Besteel reporting a slight stock decline.
The inventory increase was driven by expectations of a short-term price peak, while recent price hikes by SeAH Steel and additional supplier premiums by Hyundai Steel have supported scrap collection activity.
Moreover, the restart of one of Hyundai Steel’s plants at Pohang on 9 June and the completion of roof construction at another, which is scheduled by 22 June, are likely to increase regional scrap consumption.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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