|  | 09/07/2004 |
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Mini-Mills Start Joint Scrap Stock around Tokyo
Eleven electric furnace steel makers’ ferrous scrap stock joint venture started to build joint inventory up to 45,000 tonnes. Godo Steel and other concrete reinforcing steel bar makers keep stock for the JV other than their own use. The first attempt for joint scrap stock by electric furnaces is to stabilize their operations by reducing volatility of scrap price, which is sensitive to international price.
Scrap price surged since the beginning of the year and electric furnaces had trouble to secure requirement. The JV purchased scrap at market price after scrap price decreased since late March. Godo Steel, Tokyo Tekko, Itoh Iron and Steel and other makers started building stock.
The JV will support members’ stable operations though members have to secure their own scrap essentially. The JV’s stock is expected to become safety net for members including psychological effect.
Eleven makers established the JV with 11 million yen of capital in December 2003. Scrap is generated at around 700,000 tonnes per month around Tokyo. The JV stocks 45,000 tonnes of scrap, which represents 10% of around 500,000 tonnes of consumption by local electric furnaces. Members pay equally for purchase, management and transportation of scrap. Members can use the stock as needed.
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 | Mini-Mills Start Joint Scrap Stock around Tokyo
| | H beam stock in the end of June rise to 303,600 tonnes
| | NSSC Changes How to Form Selling Price
| | Eramet to strengthen annual output capacity of manganese ore
| | Ferrous Scrap Market in Tokyo to Continue to Rise
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