Japanese EAFs are to form a joint stockpiling company

Japanese EAFs are to form a joint stockpiling company

Recent market reports state that eleven Japanese electric arc furnaces, producing steel bars, jointly formed Metal Stock Co., a stockpiling company with a Yen 11 million ($101.217) capital, which is evenly allocated between the shareholders. Primarily, the company is planning to stock around 10% of monthly crude steel production in the Kanto region, Tokyo, which accounts to 45'000 tons of ferrous scrap, and start stockpile purchases not before the scrap prices begin to fall. It is reported that this company is aimed to stabilize the domestic ferrous scrap prices which show a great volatility lately, and provide a constant supply to the market. Besides, in case this initiative becomes successful, further expansion is likely to be considered. Date set for the official commencement of the stockpiling company is December 1, 2003.