Integrated Steels’ Ferrous Scrap Supply Lifts Japan Scrap Export

Ferrous scrap observer, Mr. Seiichi Hayashi estimates return scrap supply from Japanese integrated steel makers supports higher Japanese scrap export when the scrap export increased for 5 months in a row through March.

The president of Steel Recycling Research Corporation, which is Ibaraki based researcher of ferrous scrap market, estimates the return scrap from integrated steel makers represents 390,000 tonnes of total scrap export in March at 14 ports near steel works. Total Japanese scrap export was around 890,000 tonnes in March from 78 ports.

Mr. Hayashi estimates the weight of return scrap from integrated steel makers has increased among total export every month since November 2008 when Japanese scrap export turned into increase. Mr. Hayashi said, however, domestic tight supply of scrap is caused mainly by lower scrap from manufacturing and destruction activity, not by higher export when return scrap is directly exported without transaction in domestic scrap market.