Defective Vehicle Lawyer

China is one of two top buyers for scrap metal from Japan. However, for Japan as a suppliers of scrap metal, China has placed a stop order. They have even gone so far as to reject shipments of scrap steel already ordered from Japan. Their reason? The fear of contaminated material from radiation is making them think twice.

This isn’t a random decision they took. The Chinese had a random testing of scrap steel from Japan, and they tested positive for radiation. Thus, they decided that unless accompanied by 3rd party guarantees, no scrap steel from Japan will be accepted.

In addition to this, because of the massive volume of scrap metal and scrap steel now in the market, the prices have dropped dramatically. It has yet to shift course because the radiation problems from the Fukushima Daiichi nuclear plant has yet to resolved. Japan has a mounting problem of where to put their scrap, and what to do with them.

China has already begun to order their scraps from Russia and the US. One Japanese company that produces steel, Sumitomo Metal Industries Limited has restarted their production line. It is working at 60% less output. With the current slack on Japan steel, and the company’s estimated loss of over US$700 million from the earthquake, it will be an uphill climb for years.  However, what is more important is that Japanese companies are starting to pick up the pieces and work again.

This showcases a more positive vibe about the Japanese and their determination not to be in a position of failure. It is an amazing feat to get back on your feat after so much devastation, and they are doing it. It’s no wonder foreign investment is on the upswing, and confidence in the business community is growing. China will be back as a top buyer of Japanese scrap steel because it is of high quality. It’s just a matter of time.