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Ferrous scrap export from Osaka bay surges when local steel makers reduce the consumption. The export increased to 7 times at 113,938 tonnes in January-March from October-December level, according to local scrap dealers' group, Kansai Tetsugen. The export is expected to keep high level in April under slower domestic consumption.

 

Ferrous scrap demand by local electric furnace steel makers decreased to monthly 200,000 tonnes level recently around Osaka while the demand was around 400,000 tonnes in January-March in 2008. The local consumption decreases more when integrated steel makers are out of the market.

The scrap supply is very low level but the supply is much more than the local steel makers' consumption around Osaka. The export balances the local supply. The export started to increase since December 2008 when the dealers try to seek new sales routes instead of local steel makers. The scrap export was monthly less than 4,000 tonnes in 2008. However, the volume reached monthly 38,000 tonnes in January-March 2009. –Japan Metal Bulletin