JFE Shoji to Expand Ferrous Scrap Trading by 7% in F2010

JFE Shoji Trade Corporation plans to increase the ferrous scrap trading volume by 7% to record 3 million tonnes in fiscal 2010 started April from former record in fiscal 2009. The firm tries to expand the supply mainly to JFE Steel and the group companies while the firm develops new procurement network including offshore sources.

The firm increased the trading by 17% to record 2.8 million tonnes in fiscal 2009 from fiscal 2008. The firm increased the international trading including trading between other countries than Japan while the sales decreased to Japanese steel makers when Japanese steel makers reduced the consumption under worldwide economy slump.

The firm plans to sell around 1.3 million tonnes for Japanese makers and 1.25 million tonnes of international trading in fiscal 2010. The firm expects the steel making raw materials sales will increase by 11% to around 88 billion yen in fiscal 2010 from fiscal 2009.

The firm tries to expand scrap procurement network by developing new sources, building new scrap yards and securing scrap from the group companies while the firm expands the purchase from existing suppliers. The firm, which already has 7 yards in Japan, tries to develop offshore scrap sources and buyers to expand the supply ability mainly for JFE Steel group.