Fe Scrap Export from Osaka Hits Record Volume for Jan-Jul

Ferrous scrap export from Osaka Bay totaled 306,335 tonnes for January-July 2009, which exceeded the annual record at 273,665 tonnes in 2006, according to Kansai Tetsugen, a scrap dealers’ group around Osaka. Ferrous scrap export maintains active when domestic steel makers’ demand for ferrous scrap stays stagnant while the demand from East Asian countries, mainly China, is strong.

Electric furnace steel makers around Osaka entered wide-range output reductions in autumn 2008 along the demand downturn for steel products. Local scrap demand reached 400,000 tonnes per month at the peak in 2008. Scrap supply was short around Osaka. However, the local demand dropped to 180,000-200,000 tonnes per month at the beginning of this year.

The main export item from Osaka Bay had been mix scrap. For January-July 2009, heavy scrap export was 250,161 tonnes, mix scrap 55,674 tonnes and other items 500 tonnes. Heavy scrap export exceeded mix scrap largely.

In July, total ferrous scrap export was 33,160 tonnes, up by 106% from a year earlier. Mix scrap export dropped by 54% to 6,010 tonnes while heavy scrap expanded by 7 times. Compared with June 2009, total export decreased by 12.4%, down for 2 consecutive months.