Company: SEAH
Filing Date: 2025-07-24
Form Type: DRS
Source: 0001213900-25-067275
Chunk: 81

Company: Seahawk Recycling Holdings, Inc.
Filing Date: 2025-07-24
Form: DRS
Chunk 81
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6 as three new electric -arcfurnaces come on -lineand automobile production normalizes. The volumes are expected to hover around 24 to 25 million metric tons through 2029, indicating that Japan’s scrap ecosystem will preserve its critical role in supplying low -carbonraw materials. Source: The Frost & Sullivan Report Market Drivers and Trends Analysis Decarbonization Policy Catalyzes Scrap Demand:Japan has pledged to achieve carbon neutrality by 2050 and to cut national greenhouse -gasemissions, with such policy agenda, branded the Green Transformation (“GX”), positions higher scrap utilization as a primary lever for decarbonizing domestic metals production as secondary metals emit less carbon dioxide than ore -basedroutes. Recent policy packages ask companies to quantify “Scope 3” emissions, which refers to those generated across the value chain rather than inside their own facilities, to set recycled -content 59 goals and prepare for a forthcoming carbon -pricingmechanism that will attach a monetary cost to residual emissions. In response, large ferrous and non -ferrousproducers are directing capital toward scrap -intensiveprocesses such as electric -arcfurnaces and are raising their internal scrap -utilizationratios. These developments strengthen demand for high -qualityscrap and therefore benefit metal trading companies and processing intermediaries, whose business model centers on sourcing material, managing quality and coordinating third -partydismantling, sorting and processing services. As mills and smelters compete for verified low -carbonfeedstock, intermediaries with strong supplier networks and market intelligence can capture larger volumes, negotiate better spreads and deepen their role as essential coordinators in the recycling value chain. Aging Infrastructure Replacement Cycle:A large portion of roads, bridges, ports, ship hulls, and high -risebuildings in Japan were erected during the rapid -growthdecades of the 1960s through the 1980s, which means many of these structures are approaching or have exceeded their engineered service life. The Japanese government safety audits and stricter seismic standards have accelerated demolition, retrofit, and rebuild programs, especially between 2020 and 2024, as stimulus budgets were channeled into public works projects for regional revitalization. Each demolition, retrofit, and rebuild project releases significant volumes of relatively clean ferrous scrap metal, including structural steel, rebar, steel plate, copper wires and stainless fixtures, all of which enter the recycling stream at predictable, contract -basedintervals. For recycled metal trading companies and processing intermediaries, this steady wave of end -of