Electric Furnaces to Keep Ferrous Scrap Stockpile

Ferrous scrap strategic stockpile company, in which 11 electric furnace steel bar makers around Tokyo have interests, announced on Monday the firm will start the official stockpile in October. The firm had considered measurement for stable scrap supply. The firm will supply scrap from 2 yards of trading firm to 11 members during 3 days holiday until March 2008. The firm said the shipment could be several thousand tonnes in 3 days holiday from October 6. The firm established in December 2003 held 10,000 tonnes of scrap stock in August 2004 temporally. The firm establishes stable stockpile system including truck transportation rotation. The firm holds stockpile at Narashino, Chiba yard of Mitsui Bussan Raw Materials and Kawasaki yard of Metal One. The stockpile firm will keep H2 grade heavy scrap processed enough to input into electric furnaces. The makers can procure scrap from the stockpile during such 3 days holiday. The stockpile company said the effort could contribute to stable supply and price by supplying scrap flexibly. The firm will expand the system after the trial. Domestic ferrous scrap market keeps high even when the makers were in a week long maintenance outages. The makers try to improve the stability for the scrap market through the stockpile system.