South Korean steelmakers' scrap inventories reclaim 900,000 t-mark after 7 weeks

• Aggressive mill buying boosts scrap stock accumulation
  
  
• Inventory gains remain concentrated among major producers
  
  

SteelDaily: South Korean steelmakers' scrap inventories rose for a fourth consecutive week, increasing by 51,000 t (6%) w-o-w to 935,000 t as of 16-17 June. The increase pushed total inventories back above the 900,000 t level for the first time in seven weeks, supported primarily by aggressive procurement activity among major steelmakers. However, inventories at rebar-focused producers remained comparatively low, suggesting that scrap availability concerns persist in parts of the market.

Region-wise inventory levels

Pohang recorded the largest weekly increase among major regions, with inventories rising by 25,000 t (11.2%) w-o-w to 248,000 t. The increase was largely attributed to Hyundai Steel's ongoing ceiling repair work at its steelmaking facility and active scrap purchasing by Dongkuk Steel.

Incheon inventories increased by 9,000 t (4.8%) to 197,000 t, while stocks in the Central region rose by 9,000 t (3.2%) to 288,000 t. Meanwhile, inventories in the Busan and Gyeongnam region edged up by 2,000 t (2.1%) to 99,000 t.

Compared to four weeks earlier, Pohang posted the strongest growth, with inventories increasing by 57,000 t (29.8%). Incheon and the Central region recorded gains of 28,000 t (16.6%) and 43,000 t (17.6%), respectively, while Busan and Gyeongnam registered a comparatively modest increase of 6,000 t (6.5%).

Product-group-wise trends

Inventories at bar and shape steelmakers, including Hyundai Steel, rose by 52,000 t (8.5%) w-o-w to 663,000 t, accounting for most of the overall increase. Meanwhile, stocks at plate and speciality steelmakers edged down by 1,000 t to 272,000 t, while inventories at five specialised rebar producers increased by 3,000 t to 97,000 t but remained relatively low.

Company-wise trends

Among the 11 steelmakers surveyed, inventories increased at six companies, with gains concentrated among major steelmakers. Market participants attributed the rise to aggressive scrap buying, while cautious procurement by rebar producers and low import volumes continued to limit stock growth in the southern region.

Although inventories have recovered above 900,000 t, stock growth remains concentrated among major steelmakers, while rebar producers continue to hold relatively tight inventories. Market participants will monitor whether the recent recovery can be sustained in the coming weeks.

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