South Korea to Consume Use 6 million tonnes More Ferrous Scrap

South Korean electric furnace steel makers expand the furnace capacity. Dongbu Steel, which starts hot rolled coil production in summer 2009, decided to add 100 tonnes electric furnace while Dongkuk Steel adds 100 tonnes furnace to improve the operation. Hyundai Steel will restart 50 tonnes furnace at Incheon plant in September after the restart of 70 tonnes furnace in May. The expansion could increase South Korean ferrous scrap demand by annual 6 million tonnes by end of 2008. The higher scrap demand in South Korea could support Japanese scrap market. Dongbu Steel builds two 120 tonnes electric furnace at Asan plant to make annual 2.4 million tonnes of hot coil. The firm tries to make 1 million tonnes of concrete reinforcing steel bar by adding 100 tonnes furnace. Dongkuk Steel replaces old small 2 furnaces with new 100 tonnes furnace. The replacement is also expected to increase the output certain level. Hyundai Steel restarted 70 tonnes furnace in May to increase shapes output for shipbuilding. The firm tries to increase the shapes and rebar by restarting 50 tonnes furnace in September. With 2 more operating furnaces, the firm increases the scrap consumption by annual 2 million tonnes. Korea Iron and Steel Association (KOSA) reported the country’s ferrous scrap consumption increased by 17.7% to 28.69 million tonnes in 2007 from 2006. The country increased the import by 19.5% to 6.92 million tonnes. With higher consumption, the country’s scrap import is expected to exceed 10 million tonnes in 2009 and after.