Mitsui Corp to Expand Metal Scrap Trading Globally

Mitsui Corporation will increase assets for such as iron ore, and expand the business for copper ore and metal scrap from building and appliance, and enhance profit base. The firm expects the business for metal scrap has high potential in the future. The firm builds up the cooperation with business partners more fully and aims to expand the trading area and volume. Metal division of Mitsui Corp trades directed reduced iron and has 18% ownership of Sims group in Australia and the metal scrap trading subsidiary of Mitsui Bussan Metal in Japan. Sims is the world larges trader for metal scrap and trades in mainly the U.S., Australia and Europe, and trades at 14 million tonnes per year for metal scrap. Mitsui Bussan Metals trades metal scrap at 1.7 million tonnes for 6 months, April-September 2011 in mainly Japan and Asia, which expects to increase the trade to around 3.8 million tonnes in fiscal 2011 ending March 2012 and 5-6 million tonnes in fiscal 2012.

The division plans to expand the business, and to increase consolidating power in Japan and Asia by application of global network of Sims, while kicks around set consolidating bases in Asia and China.

The division said the demand for metal scrap is expected to expand up by 5-6 million tonnes per year from 15-16 million tonnes in ASEAN, and will increase trade volume with Japanese business partners.

In China, the division mulls advancement for trading business in the market when the demand for metal scrap is expected to extend by increased crude steel output and stock for metal scrap. The division advance joint business with Sims in the U.S., and builds up the business in Europe, Russia, Middle-East and Africa.

As for directed reduced iron business, the division traded it at 150,000 tonnes for April-December 2011 and expects to increase to 200,000-250,000 tonnes in fiscal 2011. The division plans to increase the market share to near 10% in the world when marine trading volume for directed reduced iron is 6.5-7 million tonnes per year in the world, and will develop stable users and enhance the cooperation with supplies of directed reduced iron.

In the future, the division aims to start the business for the recycle of small appliance and to advance the recycle business for automobile and appliance in Asia. The division starts the recycle business for appliance in Thailand as undertake projects by Ministry of Economy, Trade and Industry, Japan, in the first half of 2012.