Japan Sheet Steel Stock Hits First Increase in 7 Months

Japanese hot, cold and coated sheet steel inventory held by makers, distributors and processors increased by 2.9% or 100,000 tonnes to 3.491 million tonnes at end of August from July. The stock was the third lowest level in past 15 years while the stock increased for the first time in 7 months due to the users’ lower operation rate in summer vacation. The inventory rate for the shipment decreased to 2.2 months from 2.4 months in July.

Nippon Steel sees the inventory kept the low level when the users and distributors minimized the purchase volume while the inventory usually increases by around 200,000 tonnes in August. The firm expects the makers should be cautious to keep the 3.4-3.5 million tonnes of low inventory level in and after September by avoiding excess supply under uncertain demand condition.

The sheet steel inventory increased by 4.0% to 1.568 million tonnes for makers, by 4.4% to 742,000 tonnes for distributors and by 0.7% to 1.181 million tonnes for processors in August from July. The inventory increased by 1.0% to 1.825 million tonnes for hot rolled flat steel, by 5.1% to 678,000 tonnes for cold rolled flat steel and by 5.3% to 989,000 tonnes for coated steel.

Japanese carbon steel inventory held by makers and distributors increased by 4.5% to 4.65 million tonnes for domestic shipment at end of August from July, which represents first increase in 8 months, announced by Japan Iron and Steel Federation on Wednesday. The inventory for export increased by 2.6% 1.175 million tonnes, which increased for 4 months in a row.