Nippon Steel Sees Japan H-beam Stock Still Very High in July

Japanese H-beam inventory held by members of Tokiwa-kai, which is distributors’ group dealing Nippon Steel’s products, decreased by 4.2% to 206,300 tonnes at the end of July from June, according to Nippon Steel. The stock decreased for the first time in 7 months. However, Nippon Steel sees the inventory is still very high level. The firm tries to reduce the stock to 170,000 tonnes by output adjustment. The firm left the selling price unchanged for dealers.

Nippon Steel reduced the output by suspending H-beam making lines in July. The firm plans to keep low level production through maintenance outage at the lines in Kimitsu and Sakai works in and after August.

The dealers’ inventory decreased to 2.39 months of the shipment in July from 2.73 months in June. However, the inventory rate is still higher than normal level of 2 months. Nippon Steel keeps focusing on inventory adjustment.

H-beam arrivals to the dealers from the makers decreased by 11,200 tonnes to 77,300 tonnes in July from June, which decreased for 4 months in a row, while Nippon Steel expected lower arrivals. The dealers’ shipment increased by 7,500 tonnes to 86,400 tonnes. The daily shipment also increased by 700 tonnes to 4,300 tonnes.