JFE Steel plans to reduce H-beam production shipped for dealers and distributors by 20% in July-September 2006 from October-December 2005. The firm decided to continue output reduction when H-beam inventories remained high in the market, though which decreased at the end of April from a month earlier. The firm also reduces the order reception by 20% in Jul-Sep 2006 from Oct-Dec 2005.Since March 2006 JFE Steel continued to reduce H-beam output by 10-20% and order reception by 20% from Oct-Dec 2005 with surplus H-beam inventories in the market. The market inventory was moderate at the end of 2005, said a source of JFE Steel’s building material sales department. The firm continues the output control till the market inventory becomes improved to the moderate level again.H-beam inventory was 285,000 tonnes at distributors dealing Nippon Steel’s products at the end of April. Total inventory against shipment was 2.02 months. At the end of December 2005, the inventory was 245,500 tonnes and inventory against shipment was 1.79 months.JFE Steel source said total H-beam demand is moderate from large contractors and dealers.
Japan Steel Scrap Composite Prices (Sangyo Press)
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