Japan Steel Sheet Stock Increases Again in July

Japanese hot-rolled, cold-rolled and zinc coated sheet inventory held by makers, distributors and coil centers increased by 16,000 tonnes or 0.4% to 4.053 million tonnes for domestic shipment at the end of July from June. The inventory turned to the increase again and could not reach to 4 million tonnes which was said to be the moderate level.The inventory decreased at coil centers for 6 consecutive months, while increased at makers and distributors. A concern pointed out that makers’ output expansion caused the inventory increase. An official of Nippon Steel analyzed that the market inventory could keep almost flat despite of the slight increase and that the long rainy season might impact the market trading in July. The official said that steel sheet demand maintained firm and that the firm would continue to supply steel sheet just for immediate demand toward the inventory adjustment.The inventory held by makers increased by 1.5% to 1.708 million tonnes at the end of July from June. The inventory increased by 2.5% to 820,000 tonnes at distributors, while decreased by 1.9% to 1.524 million tonnes at coil centers. The inventories decreased in July from the same month of 2005. Integrated steel maker source said the makers seek the market inventory adjustment toward 4 million tonnes even with cutting orders in some cases.Hot-rolled sheet inventory increased by 2.9% to 2.195 million tonnes at the end of July from June. Cold-rolled sheet decreased by 0.3% to 707,000 tonnes and zinc coated sheet decreased by 3.6% to 1.152 million tonnes.