The industry sketch The future of metal scrap industry in japan (1)

                                          IRUNIV 2013/07/12

 The person concerned talked about something of the fact of illogical industry. ”Once so were steel producers, they used a lot of credit line from bank before being bankrupt and continued raising sales only. Obviously they were in deficit, and as a result they went bankrupt, but there were 2-3 steel producers in Kansai that succeeded the plan.
 Now, in order the scrap industry has (a company) bought from another area, or to raise evaluation from the bank, making a good state becomes the main purpose of business.”
 Though it is “no goods and prices soared upwards”, the quotations of metal scrap keep advancing in most varieties, from iron to nonferrous metal and rare metals. While there is nothing positive demand, and no hope of guarantee of rising ahead, the only stocking is not stopped. Either the bank or the industry,they continue buying like to continue giving sales is as if a critical thing. Some intentional stock securing is also the recent circumstances so felt rather than the uneasiness in future.
 However, the scrap outbreak inside the country decreases practically and cuts down the handling quantity generally. In order not to cut it down more than now, they collect and buy it at a high price. Because most people in the scrap business have the same directivity, the quotations in circulation rise. But, it is profit-free busyness, the market where nobody makes profit. The difference is that in Europe, America or China, they take time off decisively if it doesn't pay, but there is no time off in Japan.
 However, trading company is in hard circulation even if they raise the sales only. The original is the high cost constitution, therefore the fall of the handling decrease + market price is fatal. Thus, the unification of the raw materials (including scrap) -related trading companies entangles a maker, advances in a large scale, and movement of section unification is brought forward inside the trading companies. At a major Company H, in nonferrous metal section,that is divided into two,non-iron and special metal, it is heard that there is a movement to unite them into one.At a yard to control directly in the real KansaI area, aluminum and copper are also put in addition to conventional stainless steel scrap .
 The story really changes. Recent department stores are also similar to the scrap industries. Floor space expands rapidly (therefore they borrow money from bank), but it is said that the sales do not change. Because to maintain "flat sales" while consumer population is decreasing is a difficult one instead, they may be doing well. However, even "flat sales" can not continue as it is. As convenience store industries crush each other, the phenomenon of expanding competition to start branch stores also seems like "the beginning of the end". And then the metal scrap industry is also included in the first phase of "the beginning of the end" for just an essential meaning. (continue to (2))

(IRUNIV SUU)

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