South Korea plans to stockpile scrap steel

Archiv – Korea plans to begin stockpiling scrap steel to smooth out fluctuations in supply and costs, aiding domestic manufacturers like POSCO. Kim Min, Director of Metals & Chemicals division at the Ministry of Economy says that, ’Since prices have fallen, we reckon now is the best time. The government may store about 150,000 tonnes initially and has sought about KRW 50 billion from the supplementary budget, subject to parliament’s approval.’South Korea | Korea plans to begin stockpiling scrap steel to smooth out fluctuations in supply and costs, aiding domestic manufacturers like POSCO. Kim Min, Director of Metals & Chemicals division at the Ministry of Economy says that, ’Since prices have fallen, we reckon now is the best time. The government may store about 150,000 tonnes initially and has sought about KRW 50 billion from the supplementary budget, subject to parliament’s approval.’
Kim Gyung Jung, steel analyst with Samsung Securities Co says: ’End users can secure the raw material more stably and importers can also boost bargaining power against overseas suppliers. For companies like Hyundai Steel, stable procurement is one of the top priorities because scrap makes up roughly about 60% of costs.’
According to data from the International Iron & Steel Institute, South Korea consumed 26.9 million tonnes of scrap steel in 2007, making it the fourth biggest consumer. It imported 6.9 million tonnes. South Korean last year cracked down on hoarding of rebars used in construction. The products, made from scrap metal, were sold at higher prices at a later time.