Japan Steel Sheet Inventory Maintains Over 4MT for 7 Months

Japanese steel sheet inventory for domestic shipment decreased by 0.8% or 34,000 tonnes to 4.345 million tonnes at the end of October from a month ago at Japanese steel makers, distributors and coil centers belonging to Japan Coil Center Industry Association. The inventory decreased for the first time in 3 months while kept above 4 million tonnes for 7 consecutive months. The inventory may increase in November mainly due to negative effects of flood in Thailand on Japanese car production.

Nippon Steel’s official person said the inventory adjustment is the urgent issue. Other steel makers and wholesalers also consider the current inventory level is high. The official person also showed a concern on steel import increase under super high yen rate.

Steel sheet inventory decreased by 2.4% to 2.037 million tonnes at makers while increased by 0.3% to 877,000 tonnes at dealers and increased by 1.0% to 1.431 million tonnes at coil centers. By items, the inventory decreased by 2.3% to 2.229 million tonnes for hot rolled steel sheet while increased by 0.7% to 854,000 tonnes for cold rolled steel sheet and increased by 1.0% to 1.262 million tonnes for surface treated steel sheet.

The total inventory ratio kept unchanged at 2.41 months of shipment. The inventory rate worsened by 0.13 points to 3.05 months of shipment for hot rolled sheet while improved by 0.08 points to 2.47 months for cold rolled sheet and improved by 0.04 points to 1.74 months for surface treated steel sheet.