South Korea: Ferrous scrap inventory falls for first time in 5 weeks

• Inventories remain elevated despite recent dip
  
  
• Stocks at southern mills rise amid fresh arrivals
  
  

SteelDaily: The cumulative ferrous scrap inventory at eight major South Korean steelmakers fell for the first time in five weeks. Stocks declined by 25,000 tonnes (t) (2.7%) to 891,000 t in the fourth week of July.

This marks a break from the steady stockpiling trend seen since mid-June, with the reduction likely due to slower procurement ahead of the upcoming summer holiday period. Inventories had stood at 916,000 t the previous week, reaching an almost three-month high.

While this signals a short-term shift, overall inventory levels remain high, with significant regional variations in scrap stock movements.

Region-wise inventory

Central region: Scrap stocks dropped by 6.1% w-o-w to 522,000 t from 556,000 t. The reduction at major mills in this region was a key driver of the national inventory decline.

Southern region: In contrast, inventories rose by 2.5% to 369,000 t from 360,000 t a week earlier. The rise is attributed to concentrated arrivals just before the conclusion of special purchase programmes.

Market updates

According to a market participant, "Inventories have eased slightly, but levels remain high. Some mills are still holding surplus while others face tight supply. The situation could shift again, depending on how rebar demand evolves or if production cuts materialise in the second half of the year."

Additionally, market sentiment remains cautious as factors such as fluctuating stock levels, low production, logistical constraints, and a recent recovery in steel tags influence scrap price trends and add uncertainty to purchasing decisions.

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