According to Nippon Steel Corporation, Japan's Tokiwakai group of domestic steel distributors held in stock a total of 180,900 tonnes of H beams across the nation at the end of September 2011, down by 11,700 tonnes or 6.1% MoM, when the nationwide H beam inventory ratios averaged 1.91, down from 2.31 in the month before, coming short of 2.0 for the first time in six months. The Tokiwakai group is concerned with domestic distribution of steel products from the nation's largest integrated steelmaker.

As a result, Tokiwakai's H beam stocks decreased for three consecutive months. In the breakdown by main trading areas, Tokyo accounted for 40,300 tonnes, down by 2,800 tonnes or 6.5% from a month ago; Osaka 42,700 tonnes, down by 3,600 tonnes or 7.8% MoM and Nagoya 22,300 tonnes, up by 500 tonnes or 5.2% MoM.

Tokiwakai's H beam stocks decreased in the wake of purchases by secondary and tertiary stores besides demand from deals in small lots, while there were cases of last minute demand too in reaction to signs of a future rise in H beam prices.

As far as the H beam market environment goes, NSC expects demand for steel framed structures to enter a recovery phase in its basic direction toward yearend 2011. Besides, NSC points out signs of a recovery in demand for shape products since a certain level of restoration demand is arising in the civil engineering sector.

On its part, NSC is poised to hold back on intakes of H-beam orders until market conditions will enable the company to maintain its H beam business. Also, the company is contemplating struggling to get an H beam price level capable of reproduction.

(Sourced from TEX Report Limited)