Japan H-beam Inventory Increases for 3 Months

Japanese H-beam inventory increased by 5.0% to 183,400 tonnes at the end of March from a month ago among distributors dealing Nippon Steel’s products, announced Nippon Steel on Wednesday. The inventory increased for 3 consecutive months. Total inventory against shipment was 1.99 months, which became below 2 months for the first time in 2 months when the shipment increased for temporary homes. Nippon Steel keeps adequate shipment for after-earthquake reconstructions while the firm forecasts H-beam demand basically maintains low level. The firm continues production cut to improve supply and demand balance.

Dealers’ H-beam shipment increased in March with more business days than in February and emergent orders for temporary homes. Meanwhile, Nippon Steel explained dealers’ shipment is decreasing in April to the level of February. Consequently, Nippon Steel considers continual production cut is necessary.

Dealers’ shipment increased by 9,900 tonnes in March from February while H-beam arrival at dealers’ sites increased by 4,400 tonnes. The inventory increased as a result. Delivered products increased when steel makers increased the shipment at the end of a financial year.

In Tokyo, Osaka and Nagoya, the inventory totaled 109,600 tonnes and increased by 1.7% month-to-month. The inventory ratio lowered by 0.43 points to 1.79 months. The shipment in 3 areas increased by 26.1%, mainly increasing in Osaka. Delivered products to dealers increased by 1.8%.