Japan Non-integrated Steel Produces’ Association Seeks Partnership with Scrap Dealers’ Groups

Japan Non-integrated Steel Producers’ Association seeks partnership with scrap dealers’ associations in order to forecast ferrous scrap market conditions more precisely in 2011. Mr. Katsutoshi Kurikawa, chairperson of the association, said it is hard for electric furnace carbon steel makers to set steel product selling price and sales plan when they are swayed by ferrous scrap price fluctuation. The association seeks stable price indicator and stabilizer for ferrous scrap.

Japan Non-integrated Steel Producers’ Association hasn’t applied formal discussion on the theme to Japan Iron & Steel Recycling Institute or other ferrous scrap dealers’ associations yet. The association mulls how to progress the theme by the association’s existent committees or a new task force.

Japanese steel makers have been impacted by international ferrous scrap market as well as domestic supply and demand balance especially for recent 4-5 years. Japan Non-integrated Steel Producers’ Association continues deliberation to serve more precise scrap market forecast on historical price movement or other supportive data.

The association’ rebar committee started to release rebar demand forecast (shipment volume for domestic market) every fiscal year in recent 3 years. In 2011, the committee focuses on ferrous scrap market condition since scrap cost represents large part in electric furnace steel makers’ operations.