Lower Ferrous Scrap Export from Osaka

Ferrous scrap export by Kansai Tetsugen, which is scrap dealers group around Osaka, decreased by 36% to 34,970 tonnes in fiscal 2007 ended March 2008 from previous year. The export decreased for the first time in 5 years with strong domestic demand by electric furnace and integrated steel makers. Japanese scrap export decreased except for shipment from some areas in 2007 due to higher domestic demand while the export is major part of supply in East Asia under growing demand in South Korea and other countries. A source of dealer around Osaka said integrated steel makers started to purchase H2 and lower grade scrap while integrated steel makers purchased HS and higher grade mainly before. With the higher consumption, Japanese scrap export could decrease in longer term.