Introducing Marubeni Group Companies

* Articles are based on information at the time of the interview.

Marubeni Tetsugen Co., Ltd.

Business content

Domestic sales, import, and export of raw materials for iron and steel making, mineral products, powdered metallurgical raw materials, special metals, etc., and automobile recycling business. Marubeni Tetsugen handles products such as steel scrap, pig iron, mill scales, ferro alloys, metallic silicon, ferro nickel, electrolytic nickel, coke, carburizing materials, activated carbon, metallurgical iron powder, and Bentofix (waterproof material used in civil engineering).

Message from President

Developing three pillars of operations—Steel scrap, ferro alloys, and environment-related businesses

  • Hajime Ichiki, President *

Marubeni Tetsugen was established in 1981 as a trading house which specializes in iron and steel raw materials. Our underlying philosophy is to ensure customers have access to a stable supply of the raw materials they need. Taking advantage of the Marubeni Group's global network and the business know-how we have gained over the years, we buy and sell a wide variety of mineral products, including steel scrap, the main raw material in steel, and ferro alloys, an auxiliary raw material also used to produce steel. These materials form two of the main pillars of our operations. As a member of the Marubeni Group, we act in cooperation with Marubeni's head office, which handles iron ore and coal, to provide a full line of iron and steel raw materials.

Marubeni Tetsugen also focuses its efforts on environment-related businesses, which we consider to be our third pillar of operations. These businesses include the sales of Bentofix, a waterproof material, and the recycling of used automobiles.

Bentofix is a natural waterproof material made from bentonite, a highly waterproof mineral. Bentofix effectively prevents the contamination of the soil and groundwater at final waste disposal sites, farm ponds, and other facilities.

Our automobile recycling business covers all of Japan and operates in compliance accordance with the End-of-Life Vehicles Recycling Law. The business consists of a consortium made up with steel mills and automobile dismantlers. The dismantlers press the automobiles to produce steel scrap, which is then provided as raw material to steel mills through an established supply system.

In a certain respect, you could say that the steel scrap we handle also falls within the scope of our environment-related businesses because it encourages the recycling of iron resources. Looking ahead to the future, we will continue to promote the effective use of limited resources and work to preserve the natural environment. In turn, these efforts will help contribute to the creation of a society which coexists harmoniously with nature.

Responding quickly to new developments in the market and flexibly adapting to changes and trends in the steel industry

Today, competition in the global steel industry continues to intensify. This increased level of competition is the result of growing demand in China and developing nations, as well as the rapid expansion of the production capacity in China, Korea, and other Asian countries. Following the sluggish economic period in the wake of the Lehman Brothers collapse in 2008, steel production in Japan is on the rise, particularly in the area of exports. The domestic steel business is also regaining strength. In the midst of these developments, our role is to ensure a stable supply by carefully monitoring changes in the market and accurately identifying the needs of consumers and suppliers.

Consumers and suppliers turn to trading houses for information on a variety of matters. The business environment is constantly changing, and thus the information we provide must be catered to their needs and delivered as fast as possible. In the steel scrap business, we have built a relationship of trust with consumers and suppliers, by providing accurate information we obtain through the careful monitoring of rapidly changing supply-demand conditions and market trends. As for ferro alloys, we look to uncover new business opportunities by connecting information on overseas suppliers and products to trends of consumers in the steel industry.

The ability of our employees to act decisively is the driving force behind our business activities. They frequently visit suppliers and customers to gather the latest information on new developments, which they then share with other staffs. In a way, they are like a soccer team, with each player always striving to improve their own individual skills and make the organization better.

In regards to the steel scrap industry overseas, we transferred our staff in Singapore to Indonesia in FY2013 to focus on market trends in emerging ASEAN countries. In the ferro alloy business, we dispatched our staffs to South Africa and Brazil as main supply sources to collect and deliver up-to-date information straight from the source.

Our motto is “think, propose, and then act”. This motto reflects our commitment to meeting the expectations of our consumers and suppliers as a trading house which contributes to the growth of the steel industry. To achieve this goal, our employees continually work to further their knowledge of the industry and the market to improve the quality of our services we provide within a fiercely competitive environment by adding the value only a specialized trading house can offer.

Steel Scrap: Using our nationwide network to enhance price competitiveness

Iron and steel are known for being highly recyclable materials. Today, steel scrap is a very important raw material for steel mills. Marubeni Tetsugen is concentrating its efforts on the steel scrap business to help promote an efficient use of limited natural resources around the world.

Japan is one of few countries that generate a lot of steel scrap. Marubeni Tetsugen runs a nationwide steel scrap trade through its head office in Tokyo and branches such as in Sendai up north, Nagoya and Osaka in the central regions, and Kitakyushu in the southwest. We purchase steel scrap through our local networks and sell it to steel mills in Japan and other countries. These steel mills consume steel scrap through iron-making processes to create a wide variety of steel products.

Steel scrap comes from many of sources. It is often generated during steel processing plants, the dismantling process of building and bridges etc., and the disposal of steel products. Changes in the supply and demand conditions by region, prices in overseas markets, and other factors cause the price of steel scrap to constantly fluctuate. Thus, we need to carefully monitor these changes and take a quick action. To do this, we are trying to build relationships of trust with suppliers across Japan so that we can quickly collect various information and make our company more competitive.

  • Steel scrap generated during the production of automobiles and machinery.

  • Dismantling of unused buildings and facilities to extract steel scrap.

Ferro Alloys: Ensuring stable supply through our worldwide procurement system

Specific metal elements are sometimes mixed with iron during the steelmaking process to strengthen the properties of iron and remove unnecessary components. The mixing of iron and metal elements produces a material known as ferro alloys. For example, to create ferro silicon, one of the main ferro alloy products handled by Marubeni Tetsugen, steel scrap is used as the iron source, while silica serves as the raw material ore. The two are mixed together, after which the reducing agents of coke and charcoal are added. Finally, this blend is refined in an electric furnace.

Marubeni Tetsugen has established a system to procure ferro alloys from sources around the world. This system enables us to stably supply ferro alloys to steel mills in Japan and other countries. We command the top share in the market for sales of ferro silicon, silicon manganese, ferro chrome, nickel, molybdenum, and metallic manganese.

  • Molten metal drawn from an electric furnace.
  • Ferro alloys casting process.
  • Unloading ferro alloys.

Environment-related Businesses: Promoting the sales of Bentofix and the automobile recycling business

Bentofix is a waterproof material in sheet form made from natural clay bentonite. It quickly swells when it absorbs water, with the high-density bentonite acting as a water barrier. Naturally produced, this material can be used on a semi-permanent basis. In addition, bentonite is self-repairing, and thus there is no need for maintenance to fix any holes and cracks that form. Because of these properties, Bentofix is often used in park ponds, farm ponds, underground waterproof systems, and final waste disposal sites. It is also used as a countermeasure to prevent soil and groundwater contamination. Another useful property of Bentofix is its ability to absorb cesium, and thus in recent years Bentofix has attracted interest as a means for isolating radioactive waste at disposal facilities.

  • Installation of Bentofix. Simple installation is one of the main features of Bentofix.

  • Use of Bentofix at places such as radioactive waste disposal sites.

In the automobile recycling business, Marubeni Tetsugen formed a consortium with steel mills and automobile dismantlers in response to the End-of-Life Vehicles Recycling Law implemented in 2005. The aim of this consortium is to promote the automobile recycling system ("Whole Sources Recycled") in accordance with this law. The discarded automobiles are carefully taken apart by automobile dismantlers, who remove copper and other hazardous substances, and then pressed into small sizes suitable for electric furnaces before they are delivered to steel mills. The resin and glass in seats and bumpers are burned in the electric furnace as waste materials. As a result, very little waste is generated in the recycling process.

Marubeni Tetsugen also handles a wide range of other materials and equipment. These include iron powder, a raw material used to manufacture automobile components, OA equipment, home electric appliances, and other products manufactured by powder metallurgy method. In addition to these, Marubeni Tetsugen also handles metallic silicon for aluminum alloys and chemicals, raw materials for ferro alloys such as nickel ore, chrome ore, and manganese ore, materials used in the production of steel, including electrodes, as well as cokes, carburizing materials, activated carbons, and mill scales.

  • Site where discarded automobiles are dismantled.

  • Mineral resource excavation site.


Incorporated : July, 1981
Head Office : Iidabashi Masumoto Bldg. 6F, 1-21 Agebacho, Shinjyuku-ku, Tokyo
TEL : 81-3-3513-1221
Number of Employees : 80 (as of June 2013)
Paid-in Capital : 490 million yen
Marubeni Group's
Investment Ratio
: 100%
Website : 

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