Japan Carbon Steel Inventory Increases to 7MT at May End

Japanese carbon steel products stock at steel makers and dealers increased by 518,000 tonnes to 7.033 million tonnes at the end of May from a month earlier, according to Japan Iron & Steel Federation. The stock volume increased for 2 months in a row and hit the highest since November 2003. The inventory for domestic market increased by 257,000 tonnes to 5.632 million tonnes, which increased for 2 months and hit the highest since December 2008. The inventory for export increased by 262,000 tonnes to 1.401 million tonnes, increasing for 2 consecutive months.

Steel makers’ inventory increased by 473,000 tonnes to 5.631 million tonnes, increasing for 2 months in a row. Dealers’ inventory increased by 46,000 tonnes to 1.402 million tonnes, increasing for 3 consecutive months.

The inventory to shipment ratio upped by 8.7 percentage points to 125.1%, which represented above 100% for 2 months in a row. The inventory for domestic market was 155% of shipment, decreased by 0.6 points. The inventory is expected to decrease in and after June when production activity of manufacturing industry such as automobile is recovering from the temporary suspension after Japan Earthquake.