Rebar Makers around Tokyo to Build Joint Ferrous Scrap Stock

Ferrous scrap stockpile joint venture of 11 concrete reinforcing steel bar makers around Tokyo announced on Wednesday the firm starts to build inventory preparing for 3-day holiday week end from November 23. The firm built inventory in 3 days holiday from October 6. The firm plans to stock 6,000-7,000 tonnes of H2 grade scrap with 3-6 millimeters thick at 3 yards to ship 11 members. The firm said the 3,000 tonnes of stock at 2 yards in previous stockpile attempt in early October contributed to local supply when the members increased the output under holiday cheaper electricity. The firm tries to expand the activity. The firm builds scrap inventory at yard in Funabashi, Chiba of Metal One Structural Steel & Resource along with Metal One Structural & Resource’s Kawasaki yard in Kanagawa and Mitsui Bussan Raw Materials Development’s Narashino yard in Chiba. The stockpile company will stock 6,000-7,000 tonnes while the members requested around 9,000 tonnes of stock. The stockpile firm will expand the activity with further cooperation with trading firms. The stockpile firm tries to improve the quality standard. The firm checked the grade in previous stockpile attempt in early October but each member has different check standard to accept ferrous scrap. The firm tries to seek averaged level of the grade step by step while the firm will keep more stock space and transportation to expand the activity. The 11 rebar makers established the stockpile venture in December 2003 and the firm built stockpile spot basis including 10,000 tonnes of stock in August 2004. The firm tries to contribute to stabilization of the market through the activity by fixing the price and volume in around one month advance. The attempt could help stable supply of scrap when scrap market fluctuates widely.