Japanese Integrated Steels Keep High Scrap Utilization in November

Ferrous scrap utilization in Japanese converter steel was 14% in November 2009 while scrap consumption volume for converter steel was 1.096 million tonnes, according to Japan Ferrous Raw Materials Association. The utilization rate kept above 14% for 3 months in a row though lowering by 0.3 points in November from the previous month. Japanese integrated steel makers are raising the utilization rate as high as in 2008 while scrap consumption by domestic electric furnace steel makers stays low.

Japanese integrated steels keep stable scrap procurement in January. This movement is one of positive factors for domestic scrap market price as well as active scrap export to East Asian countries including South Korea and China. Integrated steels’ purchasing price has already exceeded 30,000 yen per tonne for high grade scrap such as HS and new cutting. A trader source said integrated steel makers continue active scrap procurement when steel product export keeps favorable and hot metal price is expected to rise in the next fiscal year starting in April.