Japan Steel Inventory Slightly Lowers in September

Japanese inventory of hot-rolled, cold-rolled and coated sheet steel for domestic shipment held by makers, distributors and processors decreased by 1.8% (62,000 tonnes) to 3.429 million tonnes at the end of September from August. The inventory temporarily increased in August due to fewer operation days at the users than the makers. The inventory to shipment rate improved to 2.06 months in September from 2.2 months in August.

Nippon Steel’s sales officer said the inventory rate closed 2.0 months of decent level but sheet makers should keep cautious production along the demand.

The inventory decreased by 3.2% to 1.518 million tonnes at makers, by 2.4% to 724,000 tonnes at distributors and by 0.5% to 1.187 million tonnes at processors at the end of September from August.

By items, the inventory decreased by 3.6% to 1.76 million tonnes for hot rolled steel sheet, by 0.3% to 677,000 tonnes for cold rolled steel sheet and by 0.5% to 992,000 tonnes for coated steel sheet. The inventory rate was 2.58 months for hot rolled sheet, 2.1 months for cold rolled sheet and 1.5 months for coated steel sheet. Inventory adjustment is realrively delayed for hot sheet due to slow demand for building materials.

Japanese carbon steel inventory for domestic market decreased by 0.8% (37,000 tonnes) to 4.622 million tonnes at the end of September from August, which lowered for the first time in 2 months, according to Japan Iron & Steel Federation. The inventory for export decreased by 18.7% (220,000 tonnes) to 950,000 tonnes, which lowered for the first time in 5 months and represented below 1 million tonnes after 3 months.

Japanese steel makers’ and distributors’ steel inventory decreased by 4.4% (257,000 tonnes) to 5.578 million tonnes, the first down in 2 months. The makers’ inventory decreased by 5.4% (250,000 tonnes) to 4.367 million tonnes. The distributors’ inventory decreased by 0.6% (7,000 tonnes) to 1.21 million tonnes.

By items, the inventory decreased by 140,000 tonnes for strip with more than 600 millimeters width, by 39,000 tonnes for flat steel sheet, by 27,000 tonnes for cold-rolled electric steel, by 23,000 tonnes for cold rolled strip, by 23,000 tonnes for H-beam, by 17,000 tonnes for steel tube, by 13,000 tonnes for rail and by 10,000 tonnes for common steel wire. The inventory increased by 23,000 tonnes for small bar.

Total common steel inventory rate lowered by 13.2 percentage points to 90.1% to shipment at the end of September from August, which represented below 100% for the first time in 11 months.