Japanese integrated steel makers increase the ferrous scrap consumption. The converters’ ferrous scrap consumption increased by 2.4 percentage points to 14.8% of the raw steel output in May from a year earlier, according to Japan Ferrous Raw Materials Association. The rate has kept over 14% for 3 months in a row. The converters’ scrap consumption was 1.28 million tonnes in May, which reached 1.2 million tonnes for the first time in 2 months. The converters’ scrap consumption rate was 13% in fiscal 2007, which was the highest level after 15.5% in fiscal 1974. The consumption was 12.94 million tonnes in fiscal 2007 compared with 15.589 million tonnes in fiscal1974. The consumption is expected to increase in fiscal 2008 from fiscal 2007 when Nippon Steel and JFE Steel increase the consumption to expand the output and to reduce carbon dioxide emission. JFE Steel will increase the consumption after the firm launches new shaft furnace at Keihin area of East Japan works to consume scrap in the summer. A trading firm source expects the converters’ scrap consumption could reach 15 million tonnes level in fiscal 2008.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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