Japan H-Beam Stock Drops by 1.1% in November

Japanese H-beam inventory held by members of Tokiwa-kai, which is a group of distributors dealing Nippon Steel’s H-beam, decreased by 1.1% to 257,000 tonnes at the end of November from October, which decreased for 8 months in a row, announced by Nippon Steel on Tuesday. The inventory was 1.7 months of shipment. The monthly shipment was 151,000 tonnes, which exceded at 150,000 tonnes for 2 months. The inventory continued decreasing because the distributors’ shipment keeps high level with the higher demand. Capital investment seems to maintain actrive. The shipment is expected keeping high level.

The inventory around Tokyo area has kept more than 2 months of shipment while the inventory around Osaka and Nagoya was below 2 months. In November, the inventory around Tokyo area became to below 2 months for the first time in 10 months, which was 1.89 months of shipment.

Nippon Steel reduced the order acceptance by 20-30% in Tokyo area in November from October. The inventory decreased when distributors’ warehousing volume decreased by 6.3% to 30,061 tonnes in Tokyo area in November from October.

Nippon Steel said the overseas market price keeps high level while the domestic demand is good thanks to high business investment. The firm observes electric furnace steel makers’ production stances carefully after ferrous scrap price exceeded 30,000 yen per tonne for the first time in 26 years. The firm continues to take cautious supply stance watching demand condition in the market, while keeps the selling price unchanged.