Japan Fe Scrap Consumption Increases for 3 Months

Japanese ferrous scrap consumption increased by 12.6% to 2.732 million tonnes in May from the previous month, according to Japan Ferrous Raw Materials Association. The consumption kept increasing for 3 months in a row when domestic crude steel output gradually recovered. The consumption increased by 24.7% to 675,000 tonnes for converter steel and by 10.6% to 1.708 million tonnes for electric furnace steel. The volume kept flat at 304,000 tonnes for casting.

Domestic steel makers have reduced output volume since autumn 2008 but their production is gradually recovering at present. Under the situation, domestic ferrous scrap consumption increased by 5.1% to 2.269 million tonnes in March from the previous month and by 6.9% to 2.426 million tonnes in April.

Ferrous scrap supply totaled 2.378 million tonnes in May, increasing by 0.2% from the previous month. The supply increased by 3% to 788,000 tonnes in steel makers while decreased by 1.1% to 1.589 million tonnes in market.