Japanese distributors’ H-beam inventory held by members of Tokiwa-kai, which is a group of distributors dealing Nippon Steel’s products, kept almost unchanged at 228,900 tonnes at the end of December from November, according to Nippon Steel. Nippon Steel explained the dealers’ stock kept flat with very low demand despite of a fewer arrivals from the makers. The inventory rate worsened by 0.16 points to 2.71 months of shipment.
Nippon Steel implements H-beam output cut by over 70% compared with the ordinary volume in order to adjust the supply with the demand. Steel market price such as H-beam continues decreasing while material cost such for ferrous scrap is likely to rise. Nippon Steel is concerned on the very severe market condition with very low price and demand. The stock in Tokyo, Osaka and Nagoya decreased by 1.6% to 137,337 tonnes at the end of December from a month earlier. The stock in Tokyo and Nagoya decreased while increased in Osaka. Nippon Steel pointed out dealers’ inventory adjustment is running late in Osaka. In these 3 regions, the dealers’ shipment decreased by 6% to 50,055 tonnes while the arrivals from the makers decreased by 2.7% to 47,630 tonnes. The inventory rate was 2.75 months of the shipment, worsening by 0.12 points from the previous month. The stock in the other 8 areas, Sapporo, Tohoku, Niigata, Toyama, Shizuoka, Shikoku, Hiroshima and Kyusyu increased by 2.5% to 91,500 tonnes. The stock rate worsened by 0.22 points to 2.66 months of shipment.Japan Steel Scrap Composite Prices (Sangyo Press)
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