South Korea: Dongkuk Steel increases focus on imported scrap for H2 procurement
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- Dongkuk Steel plans to increase scrap imports in the second half
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- Narrowing domestic-import price gap improves import competitiveness
SteelDaily: South Korean steelmaker Dongkuk Steel plans to increase ferrous scrap imports in the second half of 2026, citing tighter domestic scrap availability and a narrowing price gap between imported and local material. The company believes reduced import volumes during the first half contributed to the domestic supply-demand imbalance, pushing local scrap prices sharply higher.
Rising domestic scrap prices support higher imports:
With domestic prices rising while import offers have remained relatively stable, the cost disadvantage of imported scrap has narrowed considerably. This has improved the economics of overseas procurement, encouraging the company to increase import volumes to diversify raw material sourcing and stabilise supply.
Import volumes set to rise in H2:
Dongkuk Steel expects all previously contracted import cargoes to arrive in July and plans to begin fresh import bookings for the peak steel production season in the second half of the year. The company aims to source around 10% of its total ferrous scrap consumption through imports, reducing its dependence on the domestic market and improving procurement flexibility.
Meanwhile, SeAH Besteel, one of South Korea’s largest scrap importers in the first half of the year, is also closely monitoring Japanese export scrap prices. Market participants said the company could step up imports if Japanese prices soften further, potentially making imported scrap more competitive than domestic material.
Outlook:
Market participants expect South Korea’s ferrous scrap import activity to improve in the coming months if domestic scrap prices remain elevated and Japanese export offers soften. Increased import demand from major EAF producers could provide additional support to regional scrap trade, particularly for Japanese export cargoes during the second half of the year.
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