Japan Sheet Steel Stock Rises by 2.4% in January

Japanese hot, cold and coated sheet steel inventory increased by 2.4% to 4.188 million tonnes held by makers, distributors and coil centers for domestic shipment at end of January from December 2007. The stock increased for the first time in 5 months when users’ operation period reduced by New Year’s Holidays. The inventory exceeded decent level at 4 million tonnes. Nippon Steel source said makers and dealers should consider speculative demand and slowdown of American economy by subprime loan. The makers’ inventory increased by 1.9% to 1.839 million tonnes in January from December. The inventory increased by 5.5% to 819,000 tonnes for distributors and by 1.4% to 1.53 million tonnes for coil centers. The inventory for makers and coil centers increased when they increased output and purchasing volume due to strong demand for automobile while the inventory for dealers increased due to speculative demand. The total hot rolled flat steel inventory increased by 1.8% to 2.176 million tonnes. The stock increased by 5.1% to 1.268 million tonnes for coated steel while decreased by 0.1% to 743,000 tonnes for cold rolled flat steel.