Ferrous Scrap Export Drops from Most Areas in Japan

Japanese ferrous scrap export decreased from major 6 areas including Hokkaido, Kanto, Hokuriku, Tokai, Kinki and Chugoku-Shikoku in 2008 from 2007 while the export increased from Tohoku and Kyushu, according to Japan Ferrous Raw Materials Association. The export was limited due to higher domestic price and higher domestic demand from integrated and electric furnace steel makers in the first half year.

The carbon steel scrap export decreased by 15.6% to 5.208 million tonnes in 2008 from 2007. The export from Kanto around Tokyo decreased by 26.4% to 1.578 million tonnes, which decreased for 3 years in a row. The export from Kanto, which represented around 30% of the total export, hit the widest drop in the 8 areas. The export decreased by 20.8% to 1.01 million tonnes from Tokai around Nagoya while the export increased by 9% to 725,000 tonnes from Tohoku northeast of Kanto. The export from Tohoku was third largest in the 8 areas exceeding Kinki level for 2 years in a row.

The export from Kinki around Osaka decreased by 10.7% to 549,000 tonnes in 2008 from 2007. The export surges in 2009 due to major production cut by local electric furnace steel makers but the local scrap supply is lower than the consumption usually. The export in 2008 decreased to less than 600,000 tonnes for the first time in 4 years due to strong local demand and the historical high price as high as more than 70,000 yen through July 2008.

The export from Hokuriku north of Kanto decreased by 20.3% to 346,000 tonnes in 2008 from 2007, which decreased to less than 400,000 tones for the first time in 4 years. The export from Kyushu far west of Japan increased by 3.4% to 493,000 tonnes. The export decreased by 13.6% to 191,000 tones from Chugoku-Shikoku west of Kinki and by 4.9% to 310,000 tonnes from Hokkaido far north of Japan.