Japan Sheet Stock Hits Record in 37 Months

Japanese steel sheet inventory held by makers, dealers, and Japan Coil Center Industry Association increased by 1.5% or 64,000 tonnes to 4.473 million tonnes at end of October from September, which increased for 3 months in a row. The stock was the highest level in recent years since 4.581 million tonnes in September 2005. Nippon Steel’s steel sheet sales division sees the firm should reduce the output to improve the supply balance.

Nippon Steel describes the demand drop expands more and more and the volume is more than world steel makers’ output reduction. The demand is weakening not only in construction market but also manufacturing. Japanese automobile production for fiscal year ending March 2009, which was estimated 12 million units in the beginning of 2008, is expected to decrease to less than 11 million units.

Steel import is increasing from China and South Korea. Nippon Steel analyzes the import would increase more when the Japanese sheet price is higher than other countries and yen is strong.

Japanese sheet steel inventory held by makers decreased by 1.5% to 1.815 million tonnes at end of October from September while the dealers’ stock increased by 3.3% to 935,000 tonnes and coil centers’ stock increased by 3.7% to 1.723 million tonnes.

The hot-rolled sheet stock increased by 2.1% to 2.370 million tonnes in October from September while the cold-rolled sheet stock increased by 0.7% to 812,000 tonnes. The coated steel stock increased by 0.6% to 1.291 million tonnes. The stock volume was the highest level in the year except for makers’ stock.