Nippon Steel Cuts H-Beam Supply for Dealers

Nippon Steel cuts H-beam order receipt from distributors by 50% for June order compared with normal level, according to distributor sources. The firm apparently cuts the order receipt by 20-30% from May to normalize the distributors’ inventory level under slow demand. The firm increased the supply for distributors from March order after 80% cut for February order. However, the stock level increased at end of May for the first time in 6 months. The dealers report the shipment is around 10% lower than May level. The market price is 119,000-120,000 yen per tonne at dealers’ sites around Tokyo. The price shows sign to peak when Tokyo Steel Manufacturing kept the price for July order though the price increased sharply earlier the year. The distributors try to keep the price level while they try to find the market trend including price move by Nippon Steel in early July.