Japanese Steel Sheet Inventory Increases in July

Japanese steel sheet inventory for domestic market increased in July. The inventory of hot-rolled, cold-rolled and coated steel sheets held by steel makers, distributors and coil centers totaled 3.694 million tonnes at the end of July, increasing by 1.8% or 64,000 tonnes from a month earlier. The inventory decreased in June but upturned in July when domestic construction market maintained stagnant while steel sheet import increased. The inventory represented more than 2 months of shipment for the first time in 3 months.

Domestic steel sheet demand is estimated to shrink. One of negative factors is the cease of Japanese government’s stimulus program for eco friendly cars at the end of September. Domestic integrated steel makers are concerned on oversupply condition and eyeing output adjustment.

Steel makers’ inventory increased by 3.3% to 1.698 million tonnes. Distributors’ inventory decreased by 1.3% to 703,000 tonnes. Coil centers’ inventory increased by 1.6% to 1.293 million tonnes. By items, hot-rolled steel sheet increased by 3.4% to 1.967 million tonnes, cold-rolled sheet increased by 1.1% to 708,000 tonnes and coated sheet decreased by 0.8% to 1.019 million tonnes. The total inventory was 2.01 months of shipment, worsening by 0.1 point from a month earlier.

Japanese carbon steel product inventory totaled 4.914 million tonnes at the end of July, decreasing by 0.7% or 37,000 tonnes from a month earlier, announced by Japan Iron & Steel Federation on Tuesday. The inventory decreased for 2 months in a row. The inventory for export decreased by 6.7% or 83,000 tonnes to 1.155 million tonnes. The inventory for export decreased for the first time in 4 months while kept above 1 million tonnes for 9 straight months.