Japan Steel Inventory Increases for 2 Straight Months to September

Japanese carbon steel inventory increased by 0.2% to 6.239 million tonnes at makers and distributors at end of September from August, which increased for 2 months in a row, announced by Japan Iron and Steel Federation on Friday. The stock increased by 0.3% to 5.048 million tonnes for domestic shipment, which showed increase for 2 months in a row, while the stock decreased by 0.1% to 1.192 million tonnes for export, which represented first decline in 2 months.

The carbon steel stock at the makers increased by 0.3% to 4.991 million tonnes in September from August, which increased for 2 months in a row. The stock decreased by 1,000 tonnes to 1.248 million tonnes at the dealers.

The total inventory rate decreased by 5.6 percentage points to 98.0% of the shipment in September from August. The rate decreased by 8.6 points to 125.4% for domestic market.

Japanese steel sheet inventory for domestic shipment held by the makers, dealers and member of Japan Coil Center Association decreased by 0.9% or 34,000 tonnes to 3.81 million tonnes in September from August, which decreased for the first time in 3 months. The inventory rate decreased to 2.04 months from 2.08 months. However, the decrease was much smaller than around 70,000 tonnes at average in last 10 years.

The adequate inventory is 3.5-3.6 million tonnes for current demand level and the hot rolled sheet stock was especially high in September, according to Nippon Steel. The hot rolled sheet stock decreased by 1.8% to 1.986 million tonnes in September from August while the inventory rate increased by 0.15 point to 2.58 months, which increased for 4 months in a row.