Japan Sheet Steel Inventory Adjustment Continues in April-June

Japanese sheet steel supply is expected to remain dull in April-June. Japanese integrated steel makers expect the major production cut would reduce the inventory through end users by late May. However, the inventory adjustment could keep longer through June when hot, cold and coated sheet inventory hit record 4.7 million tonnes at end of December and higher yen rate would increase the import.

Ministry of Economy, Trade and Industry expects the sheet steel stock should be 3.7 million tonnes under the slower demand level. The one million tonnes of overstock should take time through June for adjustment, according to industry sources.

The sheet steel users try to reduce their inventory including automobile and appliances. However, the end users’ sales keep decreasing under slow demand and higher yen rate.