Japan Imported Flat Rolled Steel Stock Hits 2-Year High

Japanese imported flat rolled steel inventory at quay increased by 8.3% or 13,000 tonnes to 169,000 tonnes in Tokyo and Osaka at the end of June from May, which increased for 4 months in a row, announced by Japanese major steel trading firm, Hanwa Co. on Thursday. The inventory increased to more than 160,000 tonnes for the first time since 187,000 tonnes in May 2009. The inventory represented 26.1% or 35,000 tonnes from a year earlier when the domestic demand slowed and the import increased.

The inventory increased by 14.9% or 13,000 tonnes to 100,000 tonnes in Osaka at the end of June from May. The inventory was unchanged at 8,000 tonnes for plate. However, the inventory increased by 46.1% or 12,000 tonnes to 38,000 tonnes for hot rolled coil and by 1.8% or 1,000 tonnes to 54,000 tonnes for cold rolled coil.

The inventory was unchanged at 69,000 tonnes in Tokyo at the end of June from May. The inventory was unchanged at 9,000 tonnes for plate while the incventory decreased by 7.5% or 3,000 tonnes to 37,000 tonnes for hot rolled coil. The inventory increased by 15% or 3,000 tonnes to 23,000 tonnes for cold rolled coil.

Japanese importer source sees the import would continue high due to lower price than domestic integrated steel makers’ products and yen appreciation. The source sees the inventory would continue increasing.