Demanding resources with stable supply and competitive strength.
Developing steel business in Japan
As the demand for raw materials grows in parallel with the development of the Japanese steel industry, JFE Shoji Trade as the core trading company of the JFE Group is promoting further import of raw materials and actively participating in resource development projects for the procurement and reliable supply of competitive resources.
【 Coal 】 In response to the increased demand for raw coal as a result of the growth of crude steel production throughout the world, we are expanding import from Australia, Canada, Russia, Indonesia, etc. to procure high-grade raw coal, while making an effort to acquire rights and interests through investment to coal development projects in Australia and other countries.
As for investments to coal, starting with the acquisition of stocks of Oakbridge Pty Ltd. in Australia in 1991, we have been promoting investments to coal in Australia. Such investments include the acquisitions of rights and interests for the Coppabella and Moorvale coal mine in 1998, the Carboroughd Downs and Integra coal mines in 2005, the Sonoma coal mine in 2007, and the Baralaba and Wonbindi coal mines in 2010. We are also examining investments to new coal mines.
We provide stable supply to JFE Steel, while also making an effort to expand sales of raw coal to blast furnace makers in Asia such as China and Korea. In addition to the steel industry, we are continuing import and sales of fuel coal for electric power companies etc.
【 Iron Ore 】 In addition to import to Japan from Australia, Brazil and India, the three major resource-rich countries of the world, we are also trying to sell iron ore produced in India, Latin America, Australia and Mexico to China, whose production of crude steel has been rapidly growing in recent years.
Under the current environment where iron ore resources have been oligopolized by three major resource companies including BHP and Riotinto in Australia and Vale in Brazil, nearly monopolizing the market, JFE Shoji Trade is trying to develop and foster small-size suppliers and emerging suppliers in Latin America and Australia to strengthen sales to blast furnace makers in Japan and China.
Expanding international trade in Asia
【 Non-ferrous Metals, Ferrous Alloys 】 While the ferrous alloy business has been heavily dependent on China, we are expanding imports from Korea and South East Asia to decentralize supplier countries, making an effort to ensure continued stable supply to JFE Steel and electric furnace makers. Specifically, we decided on the financing that allows the shift to the future investment towards participation in the ferro silicon construction project that is being promoted in Sarawak in Malaysia by OM Holdings Limited that owns, invests, and manages manganese mines in Australia and South Africa. Further, regarding the sales of iron and steel scrap metal, we are now focusing on the export to Asian countries.
【 Cold Iron Sources 】 Under the current environment where measures against CO2 emissions are required and there is an increasing demand for the utilization of recycled resources, Regarding the sales of iron and steel scrap metal, we are now focusing not only to expand of domestic sales to manufacturers of blast furnaces and electric furnaces but also on the export to Asian countries including China, Korea, Taiwan, and Vietnam. In June 2012, we established a structure for capturing the demand for iron and steel scrap metal that in particular is expected to increase in Asia, through the trilateral trade by securing iron and steel scrap metal supply sources in the U.S.A. through acquisition of 8% of the shares of Advanced Steel Recovery, LLC., which is the prominent iron and steel scrap metal operator in the U.S.A.
Aiming to expand the business of scrap iron, which is a valuable urban-type recycled resource, we are committed to achieving continued stable supply to meet the needs of our customers in Japan and abroad.
【 Coke 】 We have many coke yards and coke separating facilities all over Japan, and we are operating a business mainly to sell coke to a wide range of customers including ferrous alloy, lime, electric furnace and blast furnace makers. We are also active in the development of overseas customers for sales expansion. In the procurement of coke, we participate in overseas coke markets such as Taiwan and Russia to provide attentive service that meets the customer needs in terms of both quantity and quality in the stable supply and sales in Japan and abroad.
〈 Major Products Handled 〉 Iron ore, sintering ore, coal for coke making, dolomite and other steel making materials, cokes and other coal products, nickel, chromium, zinc, alloy iron, scrap iron and other metal raw materials, aluminum, scrap aluminum, deoxidized aluminum, aluminum products