Japan Steel Product Wholesale Hits Record Low in November

Steel product sales at Japanese steel distributors decreased by 14.9% to 2.754 million tonnes in November from a year earlier, announced Japan Iron & Steel Federation on Wednesday. The sales represented year-on-year decrease for 4 months in a row and the first 2-digit decline since September 2001. The sales decreased by 8.6% compared with the previous month and hit the monthly lowest since 2.761 million tonnes in August 2008.

Small bar sales decreased by 19% in November from a year ago, which represented y/y decline for 18 straight months. H-beam sales decreased by 6.7%, showing y/y down for 8 straight months, while steel pipe and tube sales decreased by 14.8%, keeping y/y down for 7 continuous months. The sales decreased by 14% for hot-rolled sheet in November from a year ago, by 18.5% for cold-rolled sheet, by 15.3% for galvanized sheet and by 13% for plate. Sheet and plate sales represented y/y down for 2 months in a row.

Steel product inventory at Japanese steel distributors decreased by 0.3% to 3.304 million tonnes at the end of November from a month ago, which lowered for 2 months in a row. The inventory to sales ratio was 120% at the end of November, up by 10 percentage points from a month ago. The inventory ratio upped again since September and exceeded 100% for 7 straight months.

Small bar inventory decreased by 13.4% while steel pipe and tube inventory decreased by 1.4%. Meanwhile, inventory increased by 0.4% for hot-rolled sheet, by 1.5% for cold-rolled sheet, by 0.3% for galvanized sheet and by 2.1% for H-beam.