Japan Steel Accumulation Increases to 1.28 Billion Tonnes in FY2004

Japanese steel accumulation estimate increased to 1.27879 billion tones in fiscal 2004 ended March 2005, up 15.48 million tonnes from the previous fiscal year. The newly increased accumulation reached the peak at 44.67 million tonnes in fiscal 1990 as a bubble period and declined to below 15 million tonnes in fiscal 2001-2003, according to the Japan Ferrous Raw Materials Association. It turned to increase in fiscal 2004 due to the firm steel demand in the domestic market for automobile and industrial machinery. The association indicated the steel accumulation increased when Japanese industries tend to return from overseas to Japan.Domestic collection of ferrous scrap was 25.54 million tonnes in fiscal 2004, up 890,000 tonnes from the previous fiscal year. It reached the peak at 27 million tonnes in fiscal 2002, declined to 24.65 million tonnes in fiscal 2003 and kept almost flat in fiscal 2004 from the previous year. The collection ratio increased by 0.05 points to 2% in fiscal 2004.Steel accumulation in South Korea was 402.6 million tonnes in 2004 as a calendar year, up 22.18 million tonnes from the previous year, according to Korean Iron & Steel Association (KISA). The newly increased accumulation didn’t reach 24 million tones, the level in 2002 and 2003, although steel consumption expanded steadily in South Korea. However, the newly increased accumulation was larger in South Korea than in Japan by around 7 million tonnes per year.Ferrous scrap self-sufficiency ratio was 70.9% in South Korea in 2004, down 2.4% from the previous year. KISA forecasted that the ratio would reach over 100% toward 2015, though it was estimated to exceed 100% by 2010 at first. The ratio might exceed 100% after 2015, when KISA didn’t incorporate current capital investment plans by domestic electric and blast furnace steel makers.