H-Beam Market Inventory Increases around Osaka

H-beam market inventory increased around Osaka in October. The stock held by members of Tokiwa-kai, which is a group of distributors dealing Nippon Steel’s H-beam, increased by 4% to 44,400 tonnes at the end of October from a month earlier around Osaka. This is the first increase in four months. According to another steel dealers’ association around Osaka, Osaka Iron & Steel Warehousers’ Association (OSA), H-beam market stock increased by 8.7% to 33,894 tonnes in October from the previous month. Many dealers expect the inventory could turn to decrease again when dealers are reducing H-beam procurement in and after October and dealer’s order backlogs are decreasing.

In June, Tokiwa-kai members’ inventory hit 583,000 tonnes and OSA members’ inventory reached 46,688 tonnes around Osaka. Dealers reduced order volume to makers and H-beam makers implemented output cut. Then, in September, market inventory decreased to 42,700 tonnes at Tokiwa-kai members and to 31,158 tonnes at OSA members.

In September, dealers increased H-beam orders to makers to fill their stocks. The order backlogs increased by 37.9% to 22,114 tonnes at the end of September held by OSA members. Ordered H-beams were delivered to dealers in October and then market inventory increased.

Around Tokyo, shaped steel market inventory decreased by 0.8% to 62,900 tonnes at the end of October from a month ago, according to steel dealers’ association around Tokyo. The stock increased for angle steel while decreased for H-beam and channel steel. Dealers are willing to decrease the inventories under unstable market condition.

By items, the inventory decreased by 5.1% to 19,216 tonnes for H-beam, decreased by 3.0% to 12,835 tonnes for channel steel, decreased by 3.4% to 3,123 tonnes for light weight shaped steel while increased by 10.2% to 15,092 tonnes for angle steel.

Dealers’ order backlogs decreased by 1.3% to 17,817 tonnes, mainly for angle and channel steels. Dealers’ total sales volume increased by 0.2% to 44,217 tonne. By items, the sales volume increased by 8.4% to 18,719 tonnes for H-beam while decreased by 4.6% to 10,799 tonnes for angle steel and decreased by 11.0% to 6,860 tonnes for channel steel.