Lower Ferrous Scrap Supply in Osaka under Slow Economy

Ferrous scrap supply is very low level under very slow operation by the industry. Scrap purchase volume by yard dealers in Osaka decreased by 24% to 93,536 tonnes in March from a year earlier despite of the peak season of scrap supply, according to scrap dealers’ group, Kansai Tetsugen. The purchase volume decreased for 7 months in a row.

The purchase volume decreased for industrial scrap including new cutting grade and turning scrap in March from a year earlier. A dealer source said usually manufacturers increase the operation toward fiscal year end of March increasing scrap supply but the slow operation reduced the scrap supply, especially from automakers and construction machinery makers.

The new cutting scrap purchase volume by the dealers decreased by 39% to 8,582 tonnes in March from a year earlier. The turning scrap purchase volume decreased by 54% to 4,370 tonnes. The purchase volume of heavy scrap also deceased by 22% to 54,258 tonnes.