Japan Carbon Steel Stock Hits 3-Year High in October

Japanese carbon steel inventory increased by 2.6% or 142,000 tonnes to 5.718 million tonnes for domestic shipment at end of October from September, which increased for 3 months in a row, according to quick estimation by Japan Iron and Steel Federation announced on Friday. The stock was the highest level since October 2005 when domestic steel using activity decreased sharply for manufacturers including automobile and construction machinery since September. The stock for export also increased by 1.2% or 11,000 tonnes to 962,000 tonnes in October from September, which showed first increase in 2 months. The total stock increased by 2.4% or 154,000 tonnes to 6.68 million tonnes, which increased for 2 months in a row.

The carbon steel stock for the shipment increased by 7.8 percentage points to 98.4% in October from September. The stock rate increased by 6.1 points to 116.4% for domestic shipment, which became more than 100% for 3 moths in a row and represented second high after 119.8% in August 2008.

The carbon steel stock held by makers increased by 2.3% to 5.011 million tonnes at end of October from September while the distributors’ stock increased by 2.5% to 1.669 million tonnes. The stock increased for 6 months in a row for the distributors while the makers’ stock showed first increase in 2 months. The Inventory of hot-rolled coil with 600 millimeter or more width was 1.737 million tonnes, which increased by 61,000 tonnes in October from September.