Japanese ferrous scrap consumption at converters decreased by 0.1 percentage point to 14.4% of raw steel output in September from August, which stayed at as high as more than 14% for 13 months in a row, according to Japan Ferrous Raw Materials Association. However, the integrated steel makers show less appetite to increase scrap purchase, one trade firm source said.
The integrated steels’ ferrous scrap consumption bottomed out in early 2009 and the consumption stayed at more than 1 million tonnes per month since August 2009. The integrated steel makers’ scrap purchase impacts heavily on domestic supply balance when the makers’ demand represents significant portions for market of high grade scrap including HS grade, dealer source said. However, Nippon Steel reduced the purchase volume in September and the volume remains low and the scrap price gap between high grade scrap and heavy grade narrows compared with the gap in August, according to trade firm source.Japan Steel Scrap Composite Prices (Sangyo Press)
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