At the end of May this year, inventory of hot rolled coils (HRC) at South Korean steel producer POSCO's eight domestic steel service centers (SSCs) was significantly higher than one month before. There was a more rapid inventory increase for imported HRC than for domestic products.
According a recent survey by the Korea Metal Journal (KMJ), total inventory of HRC at the eight steel service centers at the end of May stood at 153,600 mt, an increase of 15.5 percent or 26,000 mt month on month. Inventory of domestic production HRC and imported HRC products respectively increased 9.9 percent to 114,100 mt and 35.3 percent to 39,500 mt, month on month. Thus, HRC inventory at POSCO's steel service centers has finally indicated an upturn, ending a downward curve stretching from October last year.
It is noteworthy more than anything else that inventory of imported HRC gained about 10,000 mt month on month. POSCO's steel service centers' sales of HRC were brisk in March and April but became more sluggish after the shrinkage of POSCO's price discount range in May, resulting in enlargement of stocks.