Japan Ferrous Scrap Export Rises by 6.5% in June

Japanese ferrous scrap export increased in June from May, which was the first increase in 2 months. The export increased by 6.5% to 502,000 tonnes, according to Japan Ferrous Raw Materials Association. The import increased by 73.4% to 111,000 tonnes, which increased for 3 months in a row. The export increased by 13.8% to 206,000 tonnes for China in June from May. The export increased by 680% to 39,000 tonnes for Taiwan while the export to South Korea decreased by 10.5% to 245,000 tonnes. The import increases recently when domestic electric furnace carbon steel makers increase the import while integrated steel makers also increase the purchase for lower carbon dioxide emission. The scrap export decreased by 13.3% to 1.642 million tonnes in April-June from same period of 2007. The import increased by 227% to 213,000 tonnes. A Japanese source said the strong domestic demand could keep the export low level. Japanese stainless steel scrap export increased by 8% to 21,010 tonnes in June from a year earlier. The export decreased by 23% from May, which decreased for 2 months in a row. The export to China was less than 10,000 tonnes as May, which was lower than export to South Korea for 3 months in a row. The stainless scrap export was 11,020 tonnes for South Korea in June, which was 58% higher than a year earlier and 41% lower than May. The export to China was 8,290 tonnes, which was 29% lower than a year earlier and 29% higher than May. Domestic stainless scrap market is still weak when domestic stainless makers keep low level output and nickel ingot price is less than US$ 20,000 per tonne at London Metal Exchange. The market is weak both for stainless scrap and products. A Japanese dealer source said domestic stainless makers could keep output reduction in and after September and the demand could take more time to recover with uncertainty for demand condition after Olympic game.