Nippon Steel Trading to Deal 20% More Ferrous Scrap in F2008

Nippon Steel Trading tries to increase the ferrous scrap trading volume by 20% to 1.2 million tonnes in fiscal 2008 starting April from estimated volume in fiscal 2007. The firm tries to expand the supply volume for Nippon Steel group companies by expanding the network after launched 2 stock yards in Niigata and Chiba in 2007. Nippon Steel Trading estimates the trading volume is around 1 million tonnes in 2007 compared with 800,000 tonnes in fiscal 2006. The firm supplies 400,000 tonnes for Nippon Steel and 570,000 tonnes for electric furnace steel makers while the firm exports around 30,000 tonnes of scrap. The sales for cold steel source unit will increase by 60% to around 37 billion yen in fiscal 2007 from fiscal 2006. The firm increases the scrap supply by 20% to 500,000 tonnes for Nippon Steel and by 5% to 600,000 tonnes for electric furnaces in fiscal 2008 from fiscal 2007 while the firm increases the export by 30% to 100,000 tonnes. The sales increase by 8% to 40 billion yen. The firm operates 5 scrap yards in Japan to collect materials and supplies the scrap mainly for Nippon Steel group companies. The firm tries to expand the scrap purchase for new yards launched in 2007 with cooperation with scrap dealers. The firm also increases the scrap purchase from group’s steel processors.