Marubeni Tetsugen to Expand Ferrous Scrap Sales to 2.8MT in F2007

Japanese major ferrous scrap and ferroalloy dealer, Marubeni Tetsugen aims to expand the selling volume of ferrous scrap to about 2.8 million tonnes in fiscal 2007 starting April, increasing by 12% or 300,000 tonnes from the previous year. Its annual ferrous scrap sales seem to expand to 2.5 million tonnes in F2006 from 2.3 million tonnes in F2005, increasing by 100,000 tonnes for domestic users and by 100,000 tonnes for export. The firm analyzed the export decreased in the last half of F2006 except for South Korea due to higher price of ferrous scrap. In addition Maruyoshi Kinzoku, the subsidiary in Hokkaido, started operation of shipping yard for export in July 2006. Maruyoshi Kinzoku aims the expansion of ferrous scrap supply for domestic and export. Marubeni Tetsugen forecasts the sales would increase by 54% to about 120 billion yen for F2006 over the previous year thanks to upsurge of ferrous scrap price and expansion of domestic steel demand. The sales could mark record since 1981 when the firm was established. The firm expects about 800 million yen of recurring profit and about 450 million yen of net profit for F2006. The firm’s employee increased by 25 to 85 in last 3 years. Yasuo Kakimi, president of Marubeni Tetsugen said ferrous scrap demand is expected to increase for both domestic and export in F2007 and especially orders from China, which is decreasing recently, would recover again.