Japan H-Beam Stock Increases by 8.9% in February

Japanese H-beam inventory held by members of Tokiwa-kai, which is a group of distributors dealing Nippon Steel’s H-beam, increased by 8.9% to 174,600 tonnes at the end of February from January, which increased for 2 consecutive months in a row, announced by Nippon Steel on Thursday. The inventory was 2.13 months of shipment, which represented above 2 months for the first time in 6 months. The inventory increased by over 10,000 tonnes in Osaka area. Nippon Steel reduces order acceptance more in and after March and adjusts the supply and demand.

Nippon Steel’s building material sales division explained the shipment is slow due to back action of specific demand in late December and low demand season for January-March. In Osaka area, the shipment volume dropped while delivered volume increased. The division said dealers should maintain inventory level in Osaka area since the inventory increased for 3 consecutive months. The division said the demand hit bottom when small building projects gradually increase and large plant construction starts for liquid crystal industry, but the demand still maintains low level.

The inventory increased by 12,700 tonnes to 107,800 tonnes in Tokyo, Nagoya and Osaka area at the end of February. The inventory increased by 0.54 points to 2.22 months in Osaka area when the inventory increased by 10,300 tonnes to 50,100 tonnes. The delivered volume decreased by 4,000 tonnes to 61,300 tonnes in 3 areas while shipment volume decreased by 7,900 tonnes to 48,600 tonnes.

The inventory increased by 1,600 tonnes to 66,800 tonnes in Sapporo, Tohoku, Niigata, Toyama, Shizuoka, Shikoku, Chugoku and Kyushu areas. The inventory ratio increased by 0.03 points to 1.99 months.