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Japan Finds Alternative Sales Of S/S Scrap In South Korea And China For Decreasing S/S Production
= The Scrap Export For Changwon Specialty Steel / S. Korea Is Trending To Increase
Under the circumstances which the production of stainless steel in Japan has been decreasing, an excessive quantity of stainless steel scrap has come up to the surface and, consequently, a direction to export more stainless steel scrap from Japan is strengthening further. In particular, the dealers concerned in Japan are endeavoring to find alternative sales of stainless steel scrap in South Korea and China. So far nickel-based stainless steel scrap is being exported from Japan to mainly Posco of South Korea but also the export for Changwon Specialty Steel of South Korea started to increase.

Changwon Specialty Steel is an affiliated company under the control of Posco but has been producing special steels and stainless steel ( long products ) and the items to be produced by them have differed from stainless steel plates and sheets to be produced mainly by Posco. Changwon Specialty Steel has been purchasing approximately 5,000 tons per month of stainless steel scrap from domestic and overseas sources and has taken a different way from that adopted by Posco.

The 5,000 tons per month of stainless steel scrap to be purchased as mentioned above have consisted of 2,000 - 3,000 tons from domestic sources of South Korea and remaining 2,000 - 3,000 tons from overseas sources. Japan is becoming the main source to import stainless steel scrap for Changwon Specialty Steel. It is said that Posco has established the companies to import stainless steel scrap from overseas sources on behalf of Posco ( Shinwa Steel is only the company appointed by Posco to import stainless steel scrap from Japan ) but, on the other hand, Changwon Specialty Steel has taken a relatively open position for import of stainless steel scrap by attaching an importance to prices to be competitive.

The quantities of stainless steel scrap exported from Japan to South Korea in the recent 3 months ( May to July ) were as per the table shown below.

The current characteristics on exports of stainless steel scrap from Japan to South Korea are that shippers of this scrap were limited to 2 - 3 companies in the past but have increased to 5 - 6 companies and shipping ports have also increased accordingly. As regards the movements taken by new comers, Ogasawara KK exported 1,200 tons of nickel-based stainless steel scrap from Kawasaki port to Changwon Specialty Steel in May of this year as the first case for them and also Tamaoka KK, as a leading company to collect stainless steel scrap in Himeji area, exported approximately 500 tons per month of nickel-based stainless steel scrap in June and July from Himeji port to the same mill of South Korea. When the work to collect stainless steel scrap goes on in order, Tamaoka plans to export stainless steel scrap to China too in the near future. All of scrap shippers in Japan have aimed to export stainless steel scrap for China but Taiyuan Iron & Steel purchases only pressed scrap and, in order to accord with this requirement, many shippers have introduced press and shredder to their yard.

It is not deniable to see a tendency to export hereafter more stainless steel scrap from Kawasaki port, because Kanto district is the largest area in Japan to generate stainless steel scrap.

Also, in view of the fact that stainless steel mills of this area are in the direction to decrease their purchases of stainless steel scrap ( by a reduction to use low grade scrap with an aim to elevate a ratio of high functional materials to be produced ), the companies of South Kanto area to collect stainless steel scrap have to target on sales of this scrap in overseas markets. Therefore, Shinwa Steel launched to operate their Kawasaki yard from summer of this year and shipped the first cargoes from Kawasaki port to Posco.

In addition to the exports of stainless steel scrap for Changwon Specialty Steel by the above-mentioned two companies, Joetsu Metal located in Japan Sea side had their exports of this scrap for this Korean mill and Kitakyu Metal of Kita-Kyushu also exported a certain quantity of stainless steel scrap to Changwon.

The scrap industry of Japan has been interested in seeing how to sell stainless steel scrap generated in Japan to major stainless steel mills of China ( Shanghai No.1 Iron & Steel Works of Baosteel Group and Taiyuan Iron & Steel ) but the case, which concluded actually contracts with Chinese mills to supply stainless steel scrap on a long term, is so far not heard yet.
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last modified : Tue 13 Sep, 2005 [10:57]
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