Japan H-beam Inventory Declines by 10% in August

Japanese H-beam inventory held by distributors dealing Nippon Steel’s product decreased by 10.0% to 183,000 tonnes in August from July, which became less than 190,000 tonnes for the first time in 4 months. The inventory rate decreased to 2.07 months from 2.47 months when Nippon Steel skipped order receipt from the dealers for 2 months in a row to improve the supply balance. The firm accepts order from the dealers in September for the first time in 3 months to refill some stock out sizes in the dealers’ stock. However, the firm plans to keep the production at low level under the slow demand.

The inventory decreased by 13.3% to 105,400 tonnes in Tokyo, Osaka and Nagoya in August from July when the arrival to the dealers decreased by 9.4% to 38,400 tonnes. The inventory rate declined to 1.93 months from 2.49 months, which was lower than balanced level of 2 months.