More Ferrous Scrap Used for Converter Steel Production in Japan

Japanese steel source consumption was 40.29 million tonnes of ferrous scrap and 82.32 million tonnes of pig iron in fiscal 2005 ended March 2006, according to Japan Ferrous Raw Material Association. Ferrous scrap consumption increased for converter steel production for 4 years in a row and exceeded 10 million tonnes in fiscal 2004 and 2005. Japanese crude steel production decreased by 180,000 tonnes to 112.7 million tonnes in fiscal 2005 from fiscal 2004, which kept over 100 million tonnes for 6 consecutive years. Steel making yield descended by 0.2 percentage points to 91.1% in fiscal 2005 from the previous year.Japanese ferrous scrap consumption was 10.42 million tonnes for converter steel production and 29.86 million tonnes for electric furnace steel production in fiscal 2005. The pig iron consumption was 81.52 million tonnes for converter steel and 790,000 tonnes for electric furnace steel.The pig iron ratio to raw materials decreased by 0.2 percentage points to 88.7% for converter steel production and increased by 0.2 points to 2.6% for electric furnace steel production in fiscal 2005 from fiscal 2004. The scrap ratio to raw materials increased by 0.2 points to 11.3% for converter steel and decreased by 0.2 points to 97.4% for electric furnace steel.Steel makers’ internal scrap generation increased by 670,000 tonnes to 15.19 million tonnes in Japan in fiscal 2005 from fiscal 2004, while scrap generation in the market decreased by 420,000 tonnes to 34.51 million tonnes.