Japan H-Beam Stock Rises in January

Nippon Steel announced on Wednesday distributors’ H-beam inventory held by members of Tokiwa-kai, which is group of distributors dealing Nippon Steel’s products, increased by 3.8% to 266,500 tonnes at the end of January from December. The stock increased for the first time in 10 months. The stock represented 2.06 months of the shipment when the shipment decreased by 9.3% to 129,300 tonnes due to fewer business days. Nippon Steel will reduce the order receipt from distributors by around 20% for February order against order request by distributors as January order when H-beam market price keeps the level with exception depending on areas though prices of other long steel products increase under higher ferrous scrap price. The firm tries to support the price level through the supply reduction. The firm reduced the order receipt from distributors by 20-30% for January order to reduce the supply. H-beam arrival to Tokiwa-kai members in Tokyo, Osaka and Nagoya decreased by 5.1% to 75,934 tonnes in January from December. With the lower supply, the inventory increased by 2.3% to 135,801 tonnes though the shipment decreased by 11.2% to 72,805 tonnes. The stock for shipment reached 2 months for the first time since May 2006. However, the stock rate was still slightly lower than 2.08 months in January 2006. The inventory tends to increase in the slower demand season. The firm sees the demand keeps firm as before. However, the supply side has no additional capacity under tight steel source of integrated steel makers and higher scrap price. The firm expects H-beam market price will increase under increase trend for other long products at home and abroad. The firm left H-beam selling price unchanged for February order.