Japan: H-beam distributor-level inventories up 2% in end-March

Japan's distributor-level inventory of H-beams in end-February, compiled by Tokiwakai, an organisation comprising of trading companies and distributors dealing with Nippon Steel's building material products, increased by 2% to 203,700 tonnes (t) during end-Mar'22 compared to the end of the previous month. The 200,000-tonne level was the fifth consecutive month of growth, the first time in nine months since May.

The inventory rate was at 3.29 months, which was in the three-month range for two consecutive months, but it decreased from the previous month. The Nippon Steel Plate and Building Materials Sales Department said that the shipment volumes will recover towards spring and the inventory rate will decline.

H-beam shipments volume, inventory

The volume of incoming shipments in the same month fell by 4.8% to 66,000 t while the distributor sector continues to adopt a cautious purchasing stance. Meanwhile, the volume of outgoing deliveries increased by 4.9% to 62,000 t. In addition to an increase in project deliveries, there was also some temporary demand due to the outlook for higher prices.
Inventories in all the three main regions (Tokyo, Osaka and Nagoya) increased, with the total three regions' inventories rising by 2.7% to 133,300 t, the fifth consecutive month of increase. It was the first time in nine months that the level reached 130,000 tonnes. The inventory rate was 3.02 months, the second consecutive month of three-month growth.

In the other eight regions (Sapporo, Tohoku, Niigata, Toyama, Shizuoka, Shikoku, Chugoku and Kyushu), inventories increased in Sapporo, Tohoku, Niigata and Shikoku. It increased by 0.7% to 70,400 t, the fifth consecutive month of increase. The inventory rate fell to 3.93 months.

The company intends to cautiously continue to examine the delivery and inventory situation of each and every distributor.

Note: This insight has been published in accordance with an article exchange agreement between SteelMint and Japan Metal Daily.