Nippon Steel announced on Tuesday the firm continues the adjustment of the supply and demand for H-beam for distributors. The firm reduces the order from distributors for the contract in June with situation of area or distributors based on the level in April when decreased by 20-30% compared with October 2006 following the contract in May when the firm passed on acceptance of order. The firm forecasts domestic demand keeps good. However, the firm prospects the shipment of distributors would continue slower due to such as delay of the order from general contractors with the revision of building standards low, and will more reduce the supply.The firm thinks to search each distributor’s condition and decide the acceptance of order volume with distributors in Thursday when Japanese distributors’ H-beam inventory held by Tokiwa-kai, which is group of dealers dealing Nippon Steel’s products, increased and decreased with area at the ended of March. The firm judged the distributors’ H-beam inventory at the ended of May increased from last month and increased in 2 months due to lower shipment. The firm forecasts the order from general contractors would recover if revised building standards low becomes effective in 20 June. However, the firm judged the firm has to reduce supply for the improvement of the supply and demand in the market for distributors.The firm announced on Tuesday Japanese distributors’ H-beam inventory held by Tokiwa-kai, which is group of dealers dealing Nippon Steel’s products, increased by 1.1% to 274,300 tonnes at the end of May from April, which represents increases when it decreased in 4 months in a row. Because the arrival of products increased in Japanese distributors which increased by 21.7% in Tokyo, the inventory increased with slower shipment.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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