Japan's Tokiwakai group of domestic steel distributors held in stock a total of 159,500 tonne of H beams across the nation at the end of October 2010, down 5,700 tonnes or 3.5% from a month ago, when the nationwide H-beam inventory ratios averaged 1.81%, down from 1.84% in the month before. As a result, Tokiwakai's H-beam stocks fell off to an all-time low.

The Tokiwakai group is concerned with domestic sales of steel products from the nation's largest integrated steelmaker.

In the breakdown by main trading areas, Tokyo accounted for 36,200 tonnes, down 2,500 tonnes or 6.5% from a month ago; Osaka 36,900 tonnes, up 2,200 tonnes or 6.3% and Nagoya 18,700 tonnes, down 1,200 tonnes or 6.0%.

Meanwhile, the domestic H-beam market has yet to pull out of its slack. But there are signs of a recovery in H-beam demand even though deals are limited to small lots for short term deliveries. With housing construction starts trending upward and ferrous scrap prices turning up, the groundwork is shaping up for a rebound in the H beam market. As a result, Nippon Steel is contemplating maintaining its H beam production to meet actual demand toward a revival of H beam prices.

(Sourced from Tex Report)