Japanese converters’ ferrous scrap consumption increased by 0.3 percentage points to 14.2% or 1.108 million tonnes of the raw steel output in March from February, according to Japan Ferrous Raw Materials Association. The consumption rate increased to more than 14% for the first time in 6 months.
The converters’ ferrous scrap consumption volume increased in March from February for the first time in 2 months. However, one scrap dealer source said the scrap demand decreased for converters when steel demand for integrated steel makers decreased from automakers and other users after the major earthquake. The source said the scrap demand would remain low. Domestic supply of new cutting scrap, which integrated steel makers prefer to use, gets tight due to low generation from automobile plants. One trading firm source said domestic special steel makers, electric furnace steel makers and South Korean steel makers cannot secure new cutting scrap enough to the requirement. The tighter supply supports the new cutting scrap price while heavy scrap market price decreases.Japan Steel Scrap Composite Prices (Sangyo Press)
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