Japan Dealers’ H-Beam Stock Rises Again in April

Japanese H-beam inventory held by members of Tokiwa-kai, which is group of distributors dealing Nippon Steel’s products, increased by 2.7% to 188,300 tonnes at end of April from March, according to Nippon Steel. The stock increased for 4 months in a row while the stock rate was 2.17 months of the shipment. Nippon Steel warns the stock is higher than the demand level. The firm tries to improve the supply balance by keeping the production at low level.

Nippon Steel leaves H-beam selling price unchanged for the dealers for May order. The firm apparently tries to watch market condition including price move and demand situation. The firm indicates potential price hike in and after June to cover higher cost for raw materials and energy.

The members’ shipment decreased by 5,100 tonnes to 86,900 tonnes in April from March while the daily shipment was same level as March. The arrivals from the makers decreased by 9,000 tonnes to 91,800 tonnes after the makers increased the shipment for the dealers in March as usual in fiscal yearend.

Nippon Steel sees the demand started to recover for small building for shop and warehouse and for building renovation for better earthquake resistance. The firm expects the demand gets normal when emergency demand peaks for temporary housing and rebuilding of the major earthquake damaged area and stopped normal building activity restarts after schedule revision.

The dealers’ H-beam inventory increased by 4.2% to total 114,200 tonnes in Tokyo, Osaka and Nagoya at end April from March when the stock increased in all 3 areas. The shipment decreased by 15.5% to total 51,800 tonnes in the 3 areas with lower shipment in Osaka and Nagoya. The arrivals increased by 10.6% to total 56,400 tonnes. The inventory rate increased by 0.21 points to 2.20 months.

The members’ stock increased by 0.4% to 74,100 tonnes in other 8 areas including Sapporo, Tohoku, Niigata, Toyama, Shizuoka, Shikoku, Chugoku and Kyushu at end April from March. The inventory rate increased by 0.29 points to 2.11 months.