Japan H-Beam Stock Slightly Increases in December

Japanese H-beam inventory held by members of Tokiwa-kai, which is a group of distributors dealing Nippon Steel’s H-beam, increased by 0.6% to 173,500 tonnes at the end of December from November, announced by Nippon Steel on Tuesday. The inventory increased for the first time in 6 months. The inventory to shipment rate worsened by 0.12 points to 1.89 months. Nippon Steel analyzed the inventory level is slightly excess against the demand. The firm plans to keep H-beam sales price unchanged for dealers and to continue production cut.

Nippon Steel suggested the demand has gradually recovered and is expected to keep the slight uptrend in the first half of fiscal 2012 (April-September 2012). However, the firm pointed out the demand may temporarily slow down in the non-demand season of January-March. Worker shortage is also the negative factor.

The distributors’ shipment decreased by 5,500 tonnes to 91,800 tonnes in December from the previous month due to less operating days. H-beam delivery at the distributors increased by 2,200 tonnes to 92,800 tonnes. Some dealers seem to have increased H-beam order volume with an expectation the market price hit bottom.

In three large markets of Tokyo, Osaka, Nagoya, the total inventory increased by 1,600 tonnes to 105,600 tonnes. The dealers’ shipment decreased by 2,100 tonnes to 59,200 tonnes. H-beam delivery at the dealers increased by 0.8% to 60,800 tonnes. The inventory ratio worsened by 0.08 points to 1.78 months.

In the other eight areas of Sapporo, Tohoku, Niigata, Toyama, Shizuoka, Shikoku, Chugoku and Kyusyu, the inventory decreased by 600 tonnes to 67,900 tonnes. The dealers’ shipment decreased by 3,400 tonnes to 32,600 tonnes. The delivered volume increased by 1,400 tonnes to 32,000 tonnes. The inventory ratio worsened by 0.08 points to 2.08 months.