Japan Electric Furnace Makers Apprehends Ferrous Scrap Price

Chairman Mitsuoki Hino of Non-Integrated Steel Producers’ Association said at a monthly press conference on Monday that ferrous scrap price seemed to hit the bottom when dealers’ inventory significantly decreased, but he can’t prospect how the price rise under global economic downswing. Mr. Hino said electric furnace steel makers are swayed by uncertain material trends. Mr. Hino prospected Japanese rebar shipping decreases by 20% through fiscal 2008 ending March 2009 compared with fiscal 2007. He said the shipping would decrease by 10% in the first half of fiscal 2008 while more decrease in the second half due to slow demand from building constructions and civil engineering works. Mr. Hino said steel market price for building material is decent level and makers must take prudence when ferrous scrap price is uncertain.