Japan H-Beam Stock Continues Decreasing for 6 Months

Japanese H-beam inventory, held by distributors dealing Nippon Steel’s products, decreased by 1.4% to 268,900 tonnes at the end of September from a month ago, which decreased for 6 months in a row, announced Nippon Steel on Wednesday. The shipment increased by 9.3% to 153,600 tonnes, which exceeded 150,000 tonnes for the first time in 10 months. The inventory had increased to near 300,000 tonnes in late March of this year and turned to the continuous decrease in and after April thanks to inventory adjustment by makers. The inventory to shipment was 1.75 months at the end of September. Supply and demand seem balanced at present.Makers increased H-beam shipment in September approaching the end of first half of Japanese fiscal year. H-beam arrival increased at distributors then. On the other hand, the shipment increased more than the arrival at dealers. The shipment increased in Tokyo, Osaka and Nagoya areas. The inventory to shipment rate improved to 2.02 months in Tokyo, where the shipment was not so active as Osaka and Nagoya. H-beam demand seems recovering.Nippon Steel commented the inventory level is relatively moderate with expectation the market price usually turns upward when the inventory rate becomes below 1.7 months. However, the firm will continue cautious order acceptance from dealers when the inventory level still stays worse in some regions. The firm will continue the inventory adjustment and control H-beam production at the actual demand level. The firm kept the selling price for October orders.