Scrap supply is tightening for brass bar in Japan. Under the situation, Kitz Metal Works will undertake the brass bar business from Kicho Shindosho in April when Kicho Shindosho closes the business. The production layout is scheduled to be changed following the business succession and scrap dealers are concerned about the influence.Kicho Shindosho’s production bases are Kashiwa plant in Chiba Prefecture and Isohara plant in Ibaraki Prefecture, Japan. Kicho’s brass bar production is 1,000- tonne-mark per month as a middle-scale brass bar maker. The monthly purchase amount of the scrap materials is 600-700 tonnes and brass turning scrap represents the large part.Kitz Group plans to concentrate on brass bar production at the current bases in Chino, Nagano Prefecture and Joyo, Kyoto Prefecture and it is scheduled to continue to produce thin brass bars over a period even after April.The scrap price negotiations will be dealt with spot, according to some reliable source. As for circumstances surrounding the materials, there is serious supply shortage of brass turnings scrap occurring in the aftermath of sharp increase of the export to South Korea from last year, while the material demand increases under the situation that high brass bar production level of over 20,000 tonnes per month continues. As a result, excess supply capacity of the scrap materials declines considerably.
Japan Steel Scrap Composite Prices (Sangyo Press)
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