Japan H-Beam Stock Drops to Record Low in April

Japanese distributors’ H-beam inventory held by members of Tokiwa-kai, which is group of distributors dealing Nippon Steel’s products, decreased by 6.7% to the lowest level of 205,900 tonnes at end of April from March, according to Nippon Steel. The stock decreased for 5 months in a row. Nippon Steel sees the makers’ production cut contributed to the lower stock while the demand was very low. However, Nippon Steel expects the dealers should reduce the inventory more when the demand is expected to keep low level for months.

Nippon Steel sees the market started to show positive sign recently when the domestic price is approaching bottom under higher offshore demand. However, the firm expects the demand level is likely to keep for months as low as April level.

The national inventory was 2.49 months of the shipment in April, which was 0.14 months lower than March level.

The stock in Tokyo, Osaka and Nagoya decreased by 3.2% to 102,849 tonnes at end of April from March. The dealers’ shipment increased by 3.5% to 48,009 tonnes while the arrivals from the makers decreased by 0.4% to 44,560 tonnes. The inventory rate was 2.15 months of the shipment, which decreased by 0.15 months from March and near normal level of 2 months.

However, the stock in other areas than the major 3 cities was still high at end of April. The stock decreased by 10.0% to 103,000 tonnes from March. The inventory rate was 2.96 months, which was 0.09 points lower than March but much higher than normal level.