Japan H-Beam Inventory Decreases in December

Nippon Steel announced on Wednesday Japanese distributors’ H-beam inventory held by Tokiwa-kai, which is a group of dealers dealing Nippon Steel’s products, decreased by 0.8% or 2,300 tonnes to 279,000 tonnes at the end of December from a month ago, which represented year-to-year decrease for the first time in 4 months. The inventory decreased due to the makers’ lower shipment despite of the slower demand mainly for building construction. The inventory rate rose to 2.30 months of monthly shipment from 2.18 months due to the lower sales. Nippon Steel will continue the supply and demand adjustment by the reduction of order reception.H-beam inventory decreased by 3.4% to 71,112 tonnes at the end of December from a year ago around Tokyo, decreased by 0.3% to 35,897 tonnes around Nagoya while kept flat at 41,499 tonnes around Osaka. Dealers’ procurement volume largely decreased due to the makers’ reduction of order receptions, especially decreasing by 27.8% to 20,500 tonnes around Tokyo at the end of December from a year earlier.Nippon Steel decided to set the selling price of H-beam unchanged for January contracts with dealers. The firm seemed to postpone the hike considering the slower demand though dealers expected Nippon Steel would raise the selling price with expectation that material costs and freights surge more in near future. Nippon Steel would raise the selling price for February contracts.As to the order receiving reduction, Nippon Steel will keep the stance decreasing H-beam order reception by over 80% for January contracts compared with the usual year. H-beam demand seems to maintain stagnant for building construction for longer time due to the revision of Japanese building standard law. Nippon Steel keeps the reduction of the supply, which aims to improve the business environment by the adjustment of the supply and demand.