Makers and Trading Firms to Found 'Metal Stock' to Secure Scrap
Electric furnace steel bar makers in the Kanto area around Tokyo and Metal One and Mitsui Bussan Raw Materials Development Corporation is going to found a new company 'Metal Stock' to secure ferrous scrap. First of all, they will exchange market information and plan concrete measures on the matter. In future, they are considering to stockpile ferrous scrap jointly in Metal Stock to stabilize price and supply for the material. Currently, 9 steel bar makers and 2 trading firms are scheduled to participate in the company. They is calling to participate other makers including flat bar and shapes and more trading firms.

The ferrous scrap market in the Kanto area rose from the second half of last year, thanks to increase of the exports to China. The price rose sharply to about 3 times as of the beginning of this year from a year earlier. Since the electric furnace firms are forced to operate unstably with wild ups and downs of scrap price. To cope with scrap issuer was the common challenge for electric furnace steel makers and trading firms.