Japan, Ferrous Scrap Consumption Rate by Converter Increases to 13%

Ferrous scrap consumption rate by Japanese integrated steel makers’ converter increased by 1% point to 13% against pig iron in fiscal 2007 at the ended of March 2008 from fiscal 2006, which increased for 6 consecutive years, and which exceeded 10% since fiscal 1979 for the first time.Each Japanese integrated steel maker increased usage of ferrous scrap on steel converter for volume increase of steel making and the reduction of CO2. Ferrous scrap consumption by their converter exceeded 10 million tonnes for 4 consecutive years.The consumption volume increased to 12.942 million tonnes by 13% in fiscal 2007 from last year, which was highest since fiscal 1974. The consumption rate increased by 5 million tonnes for 5 years when mainly Nippon Steel and JFE Steel are expanding the consumption.Nippon Steel already started the operation large shredder plant in Oita iron works. JFE Steel plans to start the operation of Shaft furnace and shredder plant in Keihin area of East Japan iron works in this summer. Their ferrous scrap consumption is expected to more increase.Meanwhile, ferrous scrap purchase volume of electric furnace makers is decreasing when ferrous scrap dealers are increasing the supply to integrated steel makers while integrated steel makers are reducing ferrous scrap supply to electric furnace makers.