Japan H-Beam Inventory Decreases in December

Nippon Steel announced on Wednesday Japanese distributors’ H-beam inventory held by Tokiwa-kai, which is a group of dealers dealing Nippon Steel’s products, decreased by 1.1% to 272,300 tonnes at the end of December from a month ago, which decreased for the first time in 8 months. The inventory rate rose to 2.89 months of monthly shipment from 2.72 months. Nippon Steel said the inventory decreased due to the makers’ lower shipment despite of the slower demand.

H-beam inventory decreased by 3% to 131,000 tonnes at the end of December from a year ago around Tokyo, Nagoya and Osaka. The inventory in other 8 areas increased by 0.8% to 141,300 tonnes.

Around Osaka, the inventory decreased by 11.2% and the inventory rate decreased to 1.71 months from 1.96 months. Around Tokyo, the inventory increased by 4% and the inventory rate increased to 4 months from 4.5 months. The firm explained the inventory increased around Tokyo when electric furnace makers’ shipping flowed to around Tokyo and dealers’ shipping flowed around Tokyo from other area.

Nippon Steel decided to stop acceptance of order from dealers for the contract in January, which stop it for 3 consecutive months when it is necessary the firm improves the supply and demand when the order and shipping of dealers keeps slow. The firm will keep the output cut by 90% compared with normal time.