Japan Stainless Scrap Export to Hit Record High Level in 2008

Japanese export volume of stainless steel scrap would hit the secondly high annual record in 2008 following 2006, which exceeded 250,000 tonnes for January-November 2008. A Japanese dealer source said the export seemed increasing when domestic demand for stainless steel scrap was stagnant though the market price maintained low at home and overseas.

Japanese stainless steel scrap export totaled 255,150 tonnes for January-November 2008, increasing by 20% from the corresponding period of 2007, according to the trade statistics by Ministry of Finance. The 11-month export volume represented the year-on-year increase for the first time since 2006. The export increased by 63% to 124,580 tonnes for South Korea while decreased by 11% to 112,070 tonnes for China.

The export to South Korea slowed down in and after November 2008 when POSCO entered wide output reduction and skipped stainless steel scrap procurement from Japan. However, the export to the country kept above 20,000 tonnes during February-October and reached 40,000 tonnes for the first time in April.

In November, the export totaled 4,960 tonnes, which dropped down by 80% year-on-year and month-to-month. The export for South Korea was 1,050 tonnes, down by 93% month-to-month and by 89% year-on-year, the lowest volume since September 2007. The export for China was 3,770 tonnes, decreasing by 58% month-to-month and by 73% year-on-year.