Japan Stainless Scrap Export Rises by 23% in 2008

Japanese stainless steel scrap export increased by 23% to 270,730 tonnes in 2008 from 2007, which was the second high after record in 2006. The export expanded due to decreasing domestic demand when domestic stainless makers are in major production cut.

The scrap export increased by 65% to 129,770 tonnes for South Korea in 2008 from 2007, which reached 100,000 tonnes for the first time in 2 years. The export increased by around 50,000 tonnes while the export was only 1,000 tonnes in November when POSCO stopped import from Japan under production cut. The export to China decreased by 7% to 121,740 tonnes while the volume kept more than 100,000 tonnes for 3 years in a row.

Japanese stainless industry is in major slump. A trading firm source said the domestic scrap consumption would keep slow unless stainless products market recovers. The scrap export could increase due to the slow domestic market while the domestic supply is balanced due to higher export and lower domestic scrap generation under slow industrial activity.