Japan H-Beam Inventory Increases in September

Nippon Steel announced on Thursday Japanese distributors’ H-beam inventory held by Tokiwa-kai, which is a group of dealers dealing Nippon Steel’s products, increased by 5.3% to 216,200 tonnes at the end of September from a month ago, which increase for 5 consecutive months. The inventory rate was flat at 2.36 months of monthly shipment.

Nippon Steel analyzed makers’ supply increased before for the half-year ending September. And dealers’ shipping was slow due to uncertainty business condition. The firm didn’t change the selling price of H-beam for dealers in October contract, which left the selling price unchanged for 3 consecutive months. The firm continues the production reduction by 40% in October compared with ordinary month.

The inventory increased to 129800 tonnes by 6% in October from September around Tokyo, Osaka and Nagoya, and to 131,400 tonnes by 4.5%.

The firms said Japanese steel structure floor area at less than 2,200 square meters is increasing from March with no effect from the revision of Japanese building standard law but dealers’ shipment and users’ order keeps low due to uneasy feeling for cheap ferrous scrap price, a sudden alteration or clean risk in near future.

The firm analyzed the inventory increased when general contractors are going easy on buying.