JAPAN AUTOMOBILE RECYCLE NETWORK NEWS

Vol. 96

Scrap steel prices
continue to fall,
severely impacting
on recycling
businesses
The continuing sharp fall in scrap steel
prices is having a large impact on the auto
recycling businesses. Although scrap steel
was selling for as much as more than
25,000 yen per ton in January 2015, it wasgoing for only plus/minus 14,000 yen in
November. For automobile recyclers who
depend on scrap steel for most of theirincome, it is “the matter of life or death”,
said an executive of one auto recyclinggroup. With some recyclers even calling forinverse onerous contracts, the businessenvironment enveloping recyclers isheading for harder times.

FEBRUARY 2016 http://www.jara.co.jp

The situation is having aterrible impact on recyclers. If
prices continue at the present
level, “Profit would be around
7,000 yen to 8,000 yen per ton,after taking into consideration of
the costs of ELV transport,
recycling and wages,” said a major
dismantler. That suggests just how
difficult it is for recyclers to profit
from their usual operations of
ELV acceptance and dismantling.

Published by JARA Corporation
Tokyo Head Office: Shinwa Bldg. 1-2-2-7F
Nihonbashi, Chuo-ku, Tokyo, JAPAN 103-0027
Phone: +81 3 3548 3010 / Fax: +81 3 3231 4690

The deteriorating scrap steel market is puttingpressure on recyclers’ bottom line.

increase, scrapping a vehicle could result in
Recyclers whose profit mainly comes froma deficit. Therefore, to reduce possible
scrap business are, especially, on the verge
losses, recyclers are buying fewer ELVs atof having the foundations of their businessauto auctions.
shaken.
If steel scrap prices continue to go down
and fees for accepting ELVs do not go up, it
Concrete measures inevitable
is likely that Japan might experience areoccurrence of illegally discarded vehicles.
In addition to the scrap business, another
It seems that not only recyclers, but ELV
pillar of the auto recycling business is theacceptance operators and related businesses
sale of recycled parts. But for recyclers
as well, will soon have to start adjusting
focused on the scrap business, “Even if theyprices.
hastily begin recycled parts sales, it’s not so
Worsening the situation is the fact that theeasy as if they would be profitable all of adeteriorating market conditions for scrap
sudden,” said a recycled parts industry
steep seems to be affecting ELV collection
official. Production of such parts requires
With prices near 30% of peak,volume.
According
toTheJapan
Automobileknow-hows and new comers are unable torecyclers calling for inverse onerous
Recycling Promotion Center, ELV collection
sell well-selling lines of products efficiently
contracts
in first half of fiscal 2015 (April toamid today’s sluggish market.
September2015)
declinedabout90,000
There are some regions in which theAccording to Metal Recycling Japan, theunits from a year earlier to a record-low 1.62
most-recent scrap steel prices have begun tohigh for scrap steel prices in January 2015
million units. Falling scrap steel “makerebound to 16,000 yen per ton. But this does
was 26,500 yen per ton. Prices were downrecyclers
hesitate
topurchasevehiclesatnot marka departureby 4,000 yen in August and continued to
Publishedby SPN Co.,fromLtd. the current lowAUTOMOBILE
RECYCLENETWORK
NEWSpriceTokyo
Head despite
Office: Shinwa
Bldg. 1-2-2-7Fthat theauto auctions”
said the Japan
Automobile
range,expectations
drop to around 14,000 yen inJAPAN
December.
Nihonbashi, Chuo-ku, Tokyo, JAPAN 103-0027
Recycling
Promotion
Center.
marketwillimprove.
Industry-wide
counterCompared to a peak of 40,000 yen
in 02
2013, MARCH 2008
http://www.spn-partner.com
Vol.
Phone: +81 3 3548 3010 / Fax: +81 3 3231
4690
Because active buying by exporters ismeasures will apparently be needed. (Daily
prices are now nearly 30 percent lower thancausing trading prices at auto auctions toAutomotive News, Jan. 7 issue)
what they used to be.

JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.96 FEBRUARY 2016 < 2 >JARA to establish
its own quality
standards forrebuilt-parts
Major recycled parts sales network JARA
Corporation presented last year’s transaction
results and plans for this year to rebuilt-parts
makers at a JARA gathering in January inTokyo, followed by an exchange of opinions
among attendees.
In a review of its activities in 2015, JARA
also talked about a study tour to a rebuiltparts maker’s factory and the contents ofa lecture provided there, as well as abouta rebuilt-parts sales campaign. JARA
conducted a series of workshops in blocks
across the nation last year as a measure forstrengthening the rebuilt-parts business,

JARA to establish its own quality
standards for rebuilt-parts.

Logistics study group to
decide the best packing
methods in February,and distribute videp toeach group
Automotive Recycled Parts Logistics
Study Group, which consists of major
recycled auto parts sales networks, a systemdeveloper and major transport companies,
plans to produce a manual on “recommended
packing methods for recycled auto parts”.
The group intends to decide on the best
packing methods in February 2016 throughdiscussions with each members and transportcompanies. In order to better communicate
packing methods within the industry, a video

and is putting much effort into helping
member companies deepen their knowledgeof rebuilt-parts and how to expand sales ofsuch.
The rebuilt-parts market has been
expanding phase by phase and demand isalso becoming strong. However, as clear
quality standards have yet to be establishedfor rebuilt-parts, it is necessary for recycledparts sales companies to have a goodunderstanding of such parts. Going forward,
JARA intends to find a way to address thequality aspect of rebuilt-parts as it continues
to engage in the rebuilt-parts business.
JARA has already begun discussions
on setting standards for the rebuilt parts
it handles. At present, in the absence ofindustry-wide standards, transactionso f r e b uilt parts are being conductedunder standards set by each rebuilt parts
manufacturer. As such, JARA aims to clarify
quality requirements by creating its own
clear standards, thereby raising trust amongcustomers.
In general, rebuilt parts are produced
from used parts called “core” parts. A coreis washed, disassembled, and repaired, and,
if it has expendable components, thosecomponents are replaced with new parts, andthen the related components are assembled tocreate a rebuilt-parts. Such production steps
require more cost, making rebuilt parts more
expensive than reuse parts. Each maker has
its own production steps, as there is no set
procedures used throughout the industry.
Because of this, the sales staff of recycledparts sales companies bear a big burden, as
manual will be provided to eachparticipating group.
The study group was formed in 2013 bythe NGP Automobile Recyclers Association,
former EcoLine Corp., Big Wave,
Automotive Recyclers Network (ARN), andAAG, as well as system developer Broadleaf
Co. to facilitate talks on measures forcountering the rising cost of transporting
recycled parts. System Auto Parts Co. andBuyukai Corp. joined later.
The packing manual will be createdreflecting the opinions of transportcompanies, with consideration given to bothcosts and what is actually possible. It willcomprise methods deemed to be the best asselected from among proposals made byeach group. It will have recommendations
for the packing of 14 types of parts,
including front doors, fenders, bonnets(hoods), housings, radiators, etc. The video

CO2 Reduction Effect(based on Super-Line System)

The use of Reuse Parts saved

3,125 tons of CO2 emissions
in December 2015
The reference figure represents the differenceof carbon dioxide (CO2) emissions at thevehicle repair using genuine (new) parts andrecycled parts.**: Based on "Green Point System", which wasjointly developed by the Japan Automotive Parts
Recyclers Association and Waseda University
Environmental Research Institute using a life cycle
assessment (LCA) technique.

they are required to both understand eachtype of rebuilt parts and to explain such parts
to repair shops.
That is why JARA has taken it uponitself to start clarifying standards for therebuilt parts it handles. JARA is currently
considering to have the rebuilt parts it sells:1) be subject to requirements for aftersales products outlined by Japan’s Product
Liability Act, and 2) meet ISO environmentaland quality standards.
JARA has already sent questionnaires toabout 30 rebuilt parts makers with whom it
does business. Responses will be collected
and used in JARA’s setting of its direction
for standardization. (Daily Automotive News,Dec. 24, 2015 and Jan. 7 2016 issues)
will include a “Packing spec evaluation”,
which is based on “material costs +operation cost + packaging cost”.
Narrations and subtitles will be prepared inboth Japanese and English. The manual will
be utilized as an outcome of the study groupby each member group. (Daily AutomotiveNews, Jan. 21 issue)

The study group even tackled
making cardboard packing samples
for each type of parts.

JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.96 FEBRUARY 2016 < 3 >コベルコが提案する
新しい考え方
1979年世界初の自動車解体機の発売以来、30年以上にわたって金属リサイクル分野で常にリードし、環境負荷の低減に貢献してきました。
マルチ解体機
使用済み自動車の解体以外にも廃家電などの金属製機器の解体およびさまざまな複合廃棄物の解体・分別作業が可能です。

New ideas comefrom KOBELCO
Since launching the world’s first car-dismantling machine in 1979,
KOBELCO has continued to take the lead in the metals recycling industry.
For over 30 years, we have contributed to reducing environmental impact.
Multi-Dismantling Machine

Car-Dismantling Machine

In addition to dismantling end-of-life cars,Multi-Dismantling Machine can break down
various metal products and equipment
such as used household appliances andcan separate and sort various composite
material wastes.

Car-Dismantling Machine efficiently
separates and sorts raw materials in
end-of-life cars and is able to recoverrare earth metals.

http://www.kobelco-europe.com/
http://www.kobelco-kenki.co.jp/

新构想源于神钢
1979年世界第一台汽车拆除机发售以来，
30多年来一直引领金属再生领域，
在降低对环境压力方面功不可没。

http://www.kobelco-usa.com/

새로운 발상은KOBELCO에서1979년 세계 최초로 자동차 해체기를 출시한 이래,30여 년에 걸쳐 금속 재활용 분야에서 항상 앞장서서환경 부하 저감에 공헌해 왔습니다.

多功能拆除机

汽车拆除机멀티 해체기不仅可以拆除不再使用的汽车，还可以可快速进行报废汽车内素材的分类作业，용도 폐기된 자동차의 해체 외에도 폐가전제품 등 금속제 기기의

拆除废家电等金属制机器以及各种复合

能够回收稀金属资源。

해체 및 다양한 복합 폐기물의 해체 • 분리작업이 가능합니다.

废弃物品的拆除、分类作业。

http://www.kobelco-jianji.com/

http://www.samjung-kenki.co.kr/

JAPAN AUTOMOBILE RECYCLE NETWORK NEWS No.96 FEBRUARY 2016 < 4 >Go Go Japan Industry (M) Sdn Bhd
Lot 15, Jalan 4/32A,
Mukim Batu Industrial Area, 6½ Mile Off Jalan Kepong
52000 Kuala Lumpur, Malaysia.
Tel : 03-62415258 Fax : 03-62415285

High Quality品质卓越Reasonable Price
价格合理Speedy Delivery
交货迅速Excellent After Sales Service
良好的售后服务For Enquiry, Please Contact / 询问洽购, 请联络 : 03-6241 5258

< Parts Supplying Fully Back Up by HIDA TEC Japan >