Japan Ferrous Scrap Use Rises by 28.8% in 2010

Japanese ferrous scrap consumption increased in 2010 from 2009, which was the first increase in 2 years. The total scrap use increased by 28.8% to 45.003 million tonnes including converter steel, electric furnace steel and castings in 2010 from 2009. The consumption recovered when Japanese steel makers increased the output.

The converters’ scrap consumption increased by 36.9% to 13.538 million tonnes in 2010 from 2009, according to Ministry of Economy, Trade and Industry. The consumption increased by 24.7% to 24.871 million tonnes for electric furnace and by 26.4% to 5.464 million tonnes for castings and other use. The total consumption in January-October exceeded 35 million tonnes of full year consumption in 2009 when steel makers increased the output.

Japanese scrap use has increased every year from 2002 to 2008 due to higher steel demand. The scrap use hit record high in 2008 due to historical high level steel production through autumn. The scrap use decreased in 2009 from 2008 but the scrap export hit record in 2009.

Japanese scrap supply increased by 31.1% to 45.196 million tonnes in 2010 from 2009. The supply increased by 25.9% to 14.137 million tonnes from steel plants and by 33.7% to 31.059 million tonnes from the market.