Japan H-beam Inventory Shows First Down in 5 Months

Japanese H-beam inventory decreased by 3.7% to 172,500 tonnes at the end of November from the previous month among distributors dealing Nippon Steel’s products, announced Nippon Steel on Tuesday. The inventory decreased for the first time in 5 months. Total inventory rate improved by 0.15 points to 1.77 months against shipment. However, one dealer source said the inventory level is excess yet. Nippon Steel continues production cut.

Nippon Steel leaves the sales price unchanged for dealers in December and continues minimum order receipt from dealers. Nippon Steel expects the demand recovers for January-March, even continuing cautious market watch.

The dealers’ H-beam shipment increased by 4.4% to 97,300 tonnes in November from October. The product delivery at the dealers decreased by 1.0% to 90,600 tonnes.

In large three markets of Tokyo, Osaka and Nagoya, the inventory decreased by 1.2% to 104,000 tonnes. The inventory ratio lowered by 0.06 points to 1.7 months per shipment. The dealers’ shipment increased by 2.2% to 61,300 tonnes while product delivery at the dealers kept flat at 60,000 tonnes.