Japan H-beam Inventory Hits Record Low Level in December

Japanese H-beam inventory held by members of Tokiwa-kai, a group of distributors dealing Nippon Steel’s products, decreased by 0.2% to 148,900 tonnes at the end of December from a month ago, according to Nippon Steel. The inventory decreased for 6 straight months and hit the record low level. Nippon steel’s building material division explained H-beam users increased orders with an anticipation for the market price rise. However, Nippon Steel supposes the demand recovery is still weak and intends to continue reduction of H-beam output volume and order receipt.

The inventory to shipment ratio was 1.54 months at the end of December, which worsened by 0.04 points from November while represented below 2 months for 4 consecutive months. Meanwhile, H-beam arrival volume at Tokiwa-kai members and inventory-to-shipment rate upped in Osaka area. Nippon Steel cautiously watches the market condition to keep the moderate inventory level.

H-beam demand hit bottom and gradually recovers for small-size construction projects or liquid crystal related industries, according to Nippon Steel. Nippon Steel analyzes the recovery is still weak and the market inventory should be maintained at the current low level for a while.

H-beam inventory in major 3 areas (Tokyo, Osaka and Nagoya) increased by 3.0% to 86,300 tonnes at the end of December from November. The inventory especially increased by 9.8% to 34,600 tonnes around Osaka. Inventory ratio in these 3 areas upped by 0.08 points to 1.43 months. The inventory decreased by 4.3% to 62,600 tonnes in the other 8 areas (Sapporo, Tohoku, Niigata, Toyama, Shizuoka, Shikoku, Chugoku and Kyusyu). The inventory ratio downed by 0.03 points to 1.72 months.