Japan Stainless Steel Scrap Export to China Expands

Japanese stainless steel scrap export to China continues expanding. The export to China increased to about 4 times in January 2007 from a year ago, when stainless steel production is increasing rapidly in China. Chinese stainless steel production exceeded Japanese production in 2006 and the country became to the world largest stainless steel producer. Chinese stainless steel output is expected to continue increasing in 2007 with starting new productive facilities in the country. Japanese dealer source said Japanese stainless steel scrap export would increase in 2007 along the trend of Chinese stainless steel production. Japanese stainless steel scrap export increased by 34% to 20,540 tonnes in January from a year ago, 12,850 tonnes of which was bound for China, according to Ministry of Finance. The export to China accounted for 63% in the total export volume and exceeded 10,000 tonnes for 4 consecutive months. The export to South Korea decreased by 41% to 6,920 tonnes in January from a year ago. The export to China exceeded the export to South Korea for 3 months in a row. Stainless steel output in China increased by 68% to 5.3 million tonnes in 2006 from 2005. Japanese annual stainless steel scrap export increased to about 3 times in 2006 from 2005 and exceeded 100,000 tonnes for the first time. Stainless steel scrap supply is tightening in Japan when the export is increasing and Japanese stainless steel makers keep full operation with strong demand for stainless steel products. Nickel price at London Metal Exchange continues soaring up. Stainless steel scrap market price became to about 2.5 times compared with the beginning of 2006 and keeps increasing even now. With recent much high prices, there occur stainless steel thefts frequently in Japan.