Japan-based Ibokin Co., Ltd. has announced that it has signed a memorandum of understanding with Mitsui & Co., Ltd. to establish a stable and scalable metal scrap supply system, supporting the steel industry’s transition toward lower-carbon production.
Rising importance of recycled raw materials
The collaboration reflects a structural shift in the steel sector, where recycled inputs are becoming increasingly critical due to tightening carbon regulations and the growing adoption of electric arc furnace (EAF)-based steelmaking.
As demand for scrap rises, supply reliability, quality assurance, and traceability are emerging as key competitive factors.
Under the agreement, the companies will explore ways to enhance efficiency across the entire scrap value chain, including dismantling, sorting, processing, distribution, and reintegration into steel production. The goal is to build a more sophisticated and resilient recycling ecosystem.
Strengthening processing and global coordination
Ibokin Co., Ltd. plans to enhance its scrap processing capabilities by improving material quality, increasing supply volumes, and strengthening data traceability. Meanwhile, Mitsui & Co., Ltd. will leverage its global trading network and supply chain expertise to expand market access and improve international coordination.
A key element of the partnership is the use of data from dismantling and recycling processes to improve transparency in material flows and carbon footprint tracking. This aligns with growing regulatory requirements and customer demand for low-carbon steel products.
