Nippon Steel announced on Wednesday the firm reduces H-beam order acceptance volume from distributors by total 50% effective for contracts in October compared the corresponding month of 2006. H-beam shipment is stagnant impacted by revision of Japanese building standard law. The firm has already reduced the order acceptance from distributors by 20-30% so far compared with October 2006. The firm keeps its H-beam selling price unchanged.H-beam inventory held by Tokiwa-kai, which is a group of dealers dealing Nippon Steel’s products, increased at the en of September from a month ago. The inventory increased for the first time in late 4 months due to the shipment down. In usual September dealers’ H-beam shipment tends to increase compared with August. However, the shipment is still slow this year when order and construction start for new buildings are delayed due to the legal revision. Nippon Steel prospected the slower shipment would continue within this year.The firm explained dealers said that H-beam shipment is lowest ever and that small and middle sized building projects are stopped. Credit risk is spreading as well. Makers’ production costs are expected to surge up soon for iron ore, ferrous scrap and freights. Other makers examine to hike the selling price. However, Nippon Steel set the price unchanged for October in consideration for slower shipment.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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