Japan H-Beam Stock Decreases by 4.3% in May

Japanese dealers’ H-beam inventory decreased by 4.3% to 194,600 tonnes at members of Tokiwa-kai, which is group of distributors dealing Nippon Steel’s products, at end of May from April, according to Nippon Steel. The stock decreased for the first time in 6 months. The inventory rate increased to 2.53 months of the shipment, which increased for 6 months in a row. Nippon Steel sees the stock is much higher than the demand level. The firm tries to improve the supply balance through production cut.

The firm continues low level production at large shape mill of Kimitsu works in July as April-June. The firm expands the production cut by suspending operation of shape mill of Sakai plant for 2 weeks from end of June. The firm minimizes order receipt from the dealers.

The firm sees the domestic demand for building is improving gradually. However, the firm recognizes some of the small building demand for the dealers shift to makers’ direct shipment and the shift impacts on the dealers’ shipment. Nippon Steel continues supply network with cooperation with the dealers.

The dealers’ shipment decreased by 8.5% to total 47,300 tonnes in Tokyo, Osaka and Nagoya in May from April. The arrivals from the makers decreased by 23.3% to 38,900 tonnes. The stock decreased by 7.0% to 112,400 tonnes while the stock rate increased to 2.38 months from 2.42 months in April.

The stock decreased by 0.5% to 82,200 tonnes in other area at end of May from April. The shipment decreased by 2.9% to 29,700 tonnes and the arrivals decreased by 8.7% to 29,300 tonnes. The inventory rate increased to 2.77 months from 2.84 months in April.