Japan Sheet Steel Stock Hits 16 Months High in August

Japanese sheet steel inventory held by makers, distributors and coil centers increased by 4.1% to 3.844 million tonnes at end of August from July, which reached 3.8 million tonnes for the first time since April 2009. The inventory usually increases by around 200,000 tonnes in August due to summer vacation of the users. However, major steel makers concern for potential oversupply under uncertain domestic demand condition.

Nippon Steel sees the inventory is too high when the domestic demand decreases for automobile and export. The steel makers try to reduce the supply to improve supply balance.

The inventory increased by 2.5% to 1.737 million tonnes at the makers at end of August from July. The stock increased by 8.4% to 762,000 tonnes at the distributors and by 4.2% to 1.345 million tonnes at the coil centers.

The hot rolled flat steel stock increased by 3.0% to 2.023 million tonnes at end of August from July. The stock increased by 3.7% to 734,000 tonnes for cold rolled flat steel and by 6.7% to 1.087 million tonnes for coated steel.