Japanese mills and stockists set to create scrap 'buffer'

摘要

A group of nine small bar producers in Japan's Kanto region, together with two major steel trading firms, have revealed an audacious plan to create a ferrous scrap stockpile in the region to act as a buffer against scrap price fluctuations. Industry watchers argue that though such a stockpile would likely be small, its "psychological" impact on the market could be great. Under the plan, small bar producers led by Nippon Steel Group member Godo Steel would link up with traders Metal One and Mitsui Bussan Raw Materials Development in a new company named Metal Stock, which would be capitalized at 11 million RMB (95,000 US dollars) with each participant contributing equally. Executives from Godo Steel and Itoh Steel have already been tapped to fill management posts, and a source close to the group said the aim is to finalise details within October.