Japan Lower H-Beam Inventory in August

Nippon Steel announced on Tuesday Japanese distributors’ H-beam inventory held by Tokiwa-kai, which is group of dealers dealing Nippon Steel’s products, decreased by 0.9% to 253,200 tonnes at the end of August from July, which represents decreases for 3 months in a row. The firm analyzed the inventory decreased due to lower loading though shipping decreased influencing to Bon holiday in the middle of August. The inventory increased by 6.1% to 59,200 tonnes around Tokyo because loading which was scheduled in July was delayed in August.The amount of loading increased by 24.5% to 29,999 tonnes in August compared with July around Tokyo and of shipping decreased by 10.7% to 26,552 tonnes. The inventory rate recovered at 2.2 month for shipment in August around Tokyo from at below 2 months in July. The firm said the inventory keeps decreasing trend. The inventory decreased due to decreased loading around Nagoya and Osaka. Nippon Steel will adjust the supply and demand by the reduction of acceptance order.Nippon Steel will expand the reduction rate for the acceptance of H-beam order against some area which increased the inventory compared with existing reduction rate at 20% from October 2006. The firm keeps the reduction against other area. The firm didn’t change the selling price of H-beam for the contracts in September.The firm forecasts the demand keeps firm. But some order for building construction was delayed due to the revision of building standards law. The firm will carefully accept the order from dealers with the consideration for each dealer’s situation for the adjustment of domestic supply and demand. Nippon Steel said H-beam market price increased by 3,000 yen per tonne for a month and forecasts the price would rise in near future.