JFE Steel Cuts H-Beam Output Another 10%

JFE Steel said the firm will cut H-beam output by around 10% in March from February to reduce distributors’ inventory following move by Sumikin Steel & Shapes, which is H-beam making subsidiary of Sumitomo Metal Industries, and Nippon Steel. JFE Steel said earlier the output would decrease by around 20% in January-March from October-December. Sumikin Steel & Shapes reduces the output by 20% in February compared with averaged monthly output in October-December. Nippon Steel said the firm would reduce the output by around 20% in March from average in October-December. The integrated steel makers try to change the production from demand even level to less than the demand to decrease the inventory and support the market price. The transaction in distributors’ market turned into slow since November and the distributors’ shipment dropped in January more than in December. Tokyo Steel Manufacturing now can deliver the product in a month since January though the firm took 2 months from order to delivery in December. The shorter lead time also apparently increased the inventory along with the slower demand.