Japan Carbon Steel Stock Rises by 2.1% in November

Japanese carbon steel inventory for domestic market increased by 2.1% or 123,000 tonnes to 5.841 million tonnes at the end of November from a month earlier, which increased for 4 consecutive months, according to Japan Iron and Steel Federation. The inventory was the record high since November 2001. Steel demand dropped when manufacturing industries’ activities are slowing due to financial crisis. Japanese steel makers are reducing the output and the shipment. However, their adjustment can’t catch up with the decreasing demand. The inventory for export decreased by 0.3% or 3,000 tonnes to 959,000 tonnes, decreasing for the first time in 2 months. The total inventory increased by 0.3% or 23,000 tonnes to 6.657 million tonnes.

The inventory to shipment rate surged by 17.8 percentage points to 116.2%, which exceeded 100% for the first time since May 2006. Japanese steel makers’ steel inventory increased by 1.7% to 5.095 million tonnes in November from October, increasing for the first time in 2 months. The distributors’ inventory increased by 2.2% to 1.705 million tonnes, increasing for 7 consecutive months.

The inventory increased by 62,000 tonnes to 1.137 million tonnes for galvanized steel sheet in November from October, by 21,000 tonnes to 58,4000 tonnes for steel tube, by 20,000 tonnes to 683,000 tonnes for steel sheet. Meanwhile, the inventory decreased by 21,000 tonnes to 1.716 million tonnes for strip with more than 600 millimeters width and by 11,000 tonnes to 316,000 tonnes for H-beam.

Japanese hot, cold and coated sheet steel inventory increased by 2.1% or 910,000 tonnes to 4.565 million tonnes held by makers, distributors and coil centers for domestic shipment at end of November from a month earlier. The stock increased for 4 months in a row. Especially, the inventory for coated steel sheet increased by 3.4%, which is used mainly for automobiles. Japanese integrated steel makers aim to reduce the inventory to 4 million tonnes until March 2009.

The makers’ inventory increased by 2% to 1.852 million tonnes in November from October. The inventory increased by 4% to 972,000 tonnes for distributors and by 1% to 1.74 million tonnes for coil centers. The total hot rolled flat steel inventory increased by 1% to 2.394 million tonnes. The stock increased by 2.8% to 835,000 tonnes for cold rolled flat steel and by 3.4% to 1.335 million tonnes for coated steel.