Nippon Steel reduced 20-30% of H-beam order from distributors in Tokyo for November order from October. The firm tries to reduce supply to improve the supply balance when the distributors’ inventory was 2.01 months for the shipment at the end of October as reported by Tokiwa-kai, which is group of distributors dealing Nippon Steel’s materials. Tokiwa-kai reported the inventory was 63,818 tonnes in Tokyo at the end of October, which represented 2.01 months of the shipment against 1.67 months for nationwide average. The market price increased by around 2,000 yen in Osaka and Nagoya when the inventory was normal level at 1.33 months for Osaka and 1.18 months for Nagoya. The market price shows no sign to increase with overstock. The distributors have trouble to pass the higher cost price on the selling price after the makers increased the selling price by 2,000 yen per tonne for September and October order.
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Japan Steel Scrap Composite Prices (Sangyo Press)
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