Ferrous scrap consumption rate by Japanese integrated steel makers’ converters lowered by 0.8 percentage points to 13.1% against pig iron in CY2009 from CY2008, according to Japan Ferrous Raw Materials Association. The utilization downed for the first time in 8 years while hit the secondly highest behind 14.3% in CY2008. Ferrous scrap consumption totaled 9.882 million tonnes.
The utilization rate was 9.9% in January 2009, which hit below 10% for the first time in 5 years and a month. The rate maintained higher than 13% after June 2009 when steel makers’ output recovered and ferrous scrap price was lower than a year earlier. Domestic integrated steel makers had widely decreased ferrous scrap purchase since autumn 2008. The makers restarted the procurement from scrap dealers in June 2009 thanks to the steel demand recovery. The makers recently recommenced operations of suspended blast furnaces. The makers are likely to continue active scrap procurement when hot metal price is expected to rise in or after April 2010 and the makers are obliged to reduce CO2 emissions.M | T | W | T | F | S | S |
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Japan Steel Scrap Composite Prices (Sangyo Press)
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