Japan Dealers’ H-Beam Stock Rises in April

Japanese dealers’ H-beam inventory increased by 0.2% to 203,400 tonnes at the end of April from March at the members of Tokiwa-kai, which is a group of distributors dealing Nippon Steel’s products, according to Nippon Steel. The stock kept more than 200,000 tonnes for 2 months in a row. The stock increased for 5 months in a row. The stock rate increased to 2.47 months of the shipment compared with 2.46 months in March. Nippon Steel sees the stock is too high for the demand. Nippon Steel tries to adjust the supply balance by keeping low level production.

Nippon Steel decided to keep low level operation at large shape mill in Kimitsu works to keep low level supply for the market. The firm raised the selling price by total 5,000 yen per tonne in March and April. The firm minimizes new order receipt from the dealers while the firm keeps production cut at Kimitsu and Sakai works.

The firm sees the demand improves gradually especially for small building construction. The firm expects the demand improves for building when the order increases for small diameter column and plate for beam joint while the demand increases for rebuilding activity in damaged areas by the major earthquake.

The dealers’ H-beam stock decreased by 0.8% to 120,800 tonnes in Tokyo, Osaka and Nagoya at the end of April from March. The arrivals from the makers decreased by 16.3% to 50,700 tonnes while the shipment decreased by 3.0% to 51,700 tonnes. The stock rate increased from 2.29 months in March to 2.34 months.

The stock increased by 1.8% to 82,600 tonnes at other 8 areas at the end of April from March. The arrivals decreased by 11.8% to 32,100 tonnes and the shipment increased by 5.2% to 30,600 tonnes. The stock rate increased from 2.61 months in March to 2.70 months.