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The export of ferrous scrap from the quay around Osaka increases when the purchase by local electric furnace steel makers remains low. Ferrous scrap shipment from around Osaka was 52,478 tonnes in April, which exceeded 50,000 tonnes for 3 straight months, according to the dealers' group to tender a joint bid. The shipment for January-April 2009 was 187,626 tonnes, which topped the record for 2008.

The shipment of heavy scrap increased to about 5 times at 41,307 tonnes in April from a year earlier, which exceeded 40,000 tonnes for 3 months in a row. On the other hand, the shipment of the mixed ferrous and nonferrous scrap decreased by 11% to 11,171 tonnes. But the shipment became more than 10,000 tonnes for the first time since October 2008.

 

Crude steel output by local electric steels decreased by about 50% to around 200,000 tonnes in April from a year earlier while the ferrous scrap generation declined by 30-40%. One dealer source pointed out that the stability of market price is due to the firm export from Osaka.

 

Raw steel output by local electric steels in May would be flat from April. Scrap export from Osaka would keep steady in when the dealers seemed to be concluding the negotiation for export in April under the local demand weakness. One market source said the export from Osaka is exceptionally high. –Japan Metal Bulletin