Fuwa Metal Launches US Base for Ferrous Scrap Export

Osaka based ferrous scrap dealer, Fuwa Metal announced on Friday the firm established US subsidiary, Fuwa Metal USA in White Plains, New York, which is the first base in USA. The subsidiary started operation on August 1 exporting US scrap in container to Asia, Turkey and Spain. The US firm deals monthly 10,000 tonnes of scrap targeting annual 500,000 tonnes of export and US$ 150 million of sales in 2010. Major scrap dealers dominate the US market, which is the world largest ferrous scrap exporting county. Fuwa Metal, was established 1908 and deals annual 800,000 tonnes of ferrous scrap in Japan, tries to secure certain market share in the large market by establishing new delivery system with container transport, which enables 20 tonnes lot deals and delivery from supplier to buyer. Container carrier transport takes 15-20 days from USA to East Asia compared with around 2 months for 30,000 tonnes of bulk carrier. Container carrier can bring the cargo to any port while bulk carrier needs unloader. Fuwa Metal tries to reduce the freight by using return vessels of Chinese export to USA while bulk carrier freight surges due to higher energy cost.