Japan Major Steels’ Ferrous Scrap Use Hits 8-Month High in July

Ferrous scrap consumption by Japanese integrated steel makers increases. The converters’ ferrous scrap consumption increased by 1.3 percentage points to 14.3% of the raw steel output in July from June, which increased for 6 months in a row, according to Japan Ferrous Raw Materials Association. The rate hit more than 14% for the first time since November 2008. The integrated steels are boosting ferrous scrap consumption to increase steel output.

The converters’ scrap consumption rate decreased to less than 10% in January for the first time since December 2003 when the integrated steels reduced steel output.

However, JFE Steel restarted scrap purchasing at West Japan works in June. Other integrated steels increased scrap purchase to meet recovering steel demand. One trader source expects the integrated steels could increase scrap purchase more.