Japan Ferrous Scrap Export to Drop by 1 million tonnes in 2007

Japanese ferrous scrap export is expected to decease by around 1 million tonnes to 6.6 million tonnes in 2007 from 2006. The export decreases when Taiwanese buyers shift from bulk carrier to container carrier and Japanese scrap price is relative high in the international market. Offshore steel makers increased the scrap purchase from Japan since 2000. The scrap export increased by 1% to record 7.654 million tonnes in 2006 from 2005. The volume increased to 2.6 times from 2.895 million tonnes in 2000. The scrap export was 5.525 million tonnes in January-October. The export is likely to keep low in November and December. Taiwanese buyers reduce the import from Japan among the large importers for Japanese scrap including South Korea and China steel makers. Taiwanese buyers reduced the import by 51.7% to annualized 570,000 tonnes for the year. Taiwanese buyers shifted the carrier from balk to container when Japanese dealers prefer to bulk. The shift reduced the import from Japan. South Korean steel makers increased the import by 2.4% to 2.936 million tonnes in January-October from same period of 2006. The annual import is likely to flat from 2006. Chinese import decreased by 18% to 1.918 million tonnes in January-October. The import decreases since 2005. However, the buyers could purchase Japanese scrap depending on the price. Offshore buyers see the Japanese scrap price is relative high in the international market. The higher freight also reduces the import of Japanese scrap.