Japan H-beam Inventory Slightly Increases with Low Demand in August

H-beam inventory held by members of Tokiwa-kai, a group of distributors dealing Nippon Steel’s products, increased by 1.5% to 219,800 tonnes at the end of August from a month earlier, announced Nippon Steel. Nippon Steel’s official explained distributors’ shipment was low despite of slight demand recovery. Inventory to shipment ratio upped by 0.04 points to 2.29 months. Nippon Steel continues H-beam output reduction and cautious order receipt to minimize surplus market inventory.

Nippon Steel’s official said overseas demand for steel architectural materials could keep stable along global economic recovery, though ferrous scrap and H-beam market prices are currently weakening at offshore market. Meanwhile, domestic demand for H-beam stays stagnant and seems not to recover in a short term, said the official. Nippon Steel analyzed speculative demand emerged in August because monthly shipment didn’t decrease so much despite of less business days.

H-beam inventory in Tokyo, Osaka and Nagoya totaled 129,722 tonnes at the end of August, increasing by 3.3% from a month earlier. Distributors’ H-beam acceptance decreased by 7.7% to 62,194 tonnes while the shipment lowered by 2.8% to 58,023 tonnes. Inventory to shipment ratio upped by 0.14 points to 2.24 months.

In the other 8 areas, Sapporo, Niigata, Toyama, Shizuoka, Shikoku, Chugoku and Kyusyu, the inventory totaled 90,100 tonnes at the end of August, decreasing by 0.9% from a month earlier. Inventory to shipment ratio downed by 0.1 point to 2.38 months.