Japan H-Beam Stock Hits 10 Months High

Japanese H-beam inventory held by members of Tokiwa-kai, which is group of distributors dealing Nippon Steel’s products, increased to 205,800 tonnes at end of May, which hit 200,000 tonnes for the first time in 10 months, according to Nippon Steel. The stock increased for 5 months in a row. The inventory rate increased to 2.8 months from 2.17 months in April. Nippon Steel warns the stock is extremely high level to the current demand. The firm tries to normalize the supply balance by reducing the supply more.

The dealers’ shipment decreased by 13,300 tonnes to 73,600 tonnes in May from April. The daily shipment decreased by 400 tonnes to 3,900 tonnes. Nippon Steel sees some dealers built the inventory with expectation for higher demand to rebuild the damaged areas caused by the major earthquake. The delivery from the makers to the dealers decreased by 700 tonnes to 91,100 tonnes.

Nippon Steel sees the domestic demand shows sign to recover in small scale buildings and renovation for quack resistant structure in private sector while the improvement is still small.

The dealers’ stock increased by 9.5% to total 125,100 tonnes in Tokyo, Osaka and Nagoya in May from April. The stock increased in all 3 areas. The shipment decreased by 16.8% in the 3 areas and by near 20% in Tokyo and Osaka. The delivery from the makers to the dealers decreased by 4.3%. The stock rate increased to 2.9 months from 2.2 months in April.

The stock increased by 8.9% to 80,700 tonnes in 8 areas including Sapporo, Tohoku, Niigata, Toyama, Shizuoka, Shikoku, Chugoku and Kyushu in May from April. The stock rate increased to 2.65 months from 2.11 months.