Japan H-Beam Stock Rises by 1.1% in June

Japanese distributors’ H-beam inventory held by members of Tokiwa-kai, which is a group of distributors dealing Nippon Steel’s products, increased by 1.1% to 209,000 tonnes at the end June from May, according to Nippon Steel. Nippon Steel analyzed the inventory increased when steel makers’ supply increased despite of dealers’ shipment increase due to more operating days in June than in May. The inventory to shipment rate decreased by 0.21 percentage points to 2.26 months, which kept lowest level. Nippon Steel will continue production cut for domestic market.

The demand for H-beam keeps low in domestic market. Nippon Steel pointed out electric furnace steel makers’ purchase price of ferrous scrap is rising and the demand for building constructions is increasing mainly in Asian market. The firm said rising H-beam market price makes an impact to Japanese H-beam market early or late.

Nippon Steel said market dealers are offering cheap reselling price due to slow shipment and this trend depresses dealers’ profit if dealers expect makers’ selling price could lower.

The inventory around Tokyo, Osaka and Nagoya increased by 6.6% to 118,409 tonnes at the end of June from May. The award volume in 3 areas increased by 9.4% to 61,720 tonnes and the shipment increased by 13.1% to 54,366 tonnes. The inventory rate in 3 areas decreased by 0.13 percentage points to 2.18 months and closed to 2 months of decent level.

The inventory around 8 areas, including Sapporo, Tohoku, Niigata, Toyama, Shizuoka, Shikoku, Chugoku and Kyusyu, decreased by 5.3% to 90,500 tonnes at the end of June from May. The inventory rate in 8 areas decreased by 0.3 points to 2.38 months. Dealers’ inventory adjustment is progressing.