Japan Steel Makers’ Ferrous Scrap Purchase Drops in 2008

Japanese steel makers’ ferrous scrap purchase volume decreased by 0.2% to 32.332 million tonnes in 2008 from 2007, which was the first drop in 3 years, according to Japan Ferrous Raw Materials Association. The scrap purchase decreased by 18.4% to 6.972 million tonnes in October-December from same period of 2007, which decreased to less than 7 million tonnes for the first time since January-March 2006.

The steel makers’ scrap purchase decreased since late 2008 while the purchase volume was 7.935 million tonnes in January-March 2008, 8.896 million tonnes in April-June and 8.528 million tonnes in July-September. The annual volume decreased from 2007 due to sharp drop in the last quarter while the volume in first 3 quarters was higher than same period of 2007.

The purchase volume was increased in Kanto, Hokuriku, Tokai and Chugoku-Shikoku areas in 2008 from 2007. The volume increased by 0.2% to 7.241 million tonnes in Kanto, by 3.2% to 1.238 million tonnes in Hokuriku, by 0.1% to 4.348 million tonnes in Tokai and by 8.8% to 4.44 million tonnes in Chugoku-Shikoku area. The volume decreased by 7.1% to 817,000 tonnes in Hokkaido, by 13.5% to 1.344 million tonnes in Tohoku, by 1.2% to 8.486 million tonnes in Kinki and by 3.4% to 3.419 million tonnes in Kyushu.