According to Nippon Steel Corporation, Japan's Tokiwakai group of domestic steel distributors held in stock a total of 160,300 tonnes of H beams across the nation at the end of January 2011, up 11,400 tonnes or 7.7% from a month ago, when the nationwide H beam inventory ratios averaged 1.79%, up from 1.54% in the month before.

But NSC believes that the stock level was within an appropriate range. 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 increased for the first time in seven months.

In the breakdown by main trading areas
Tokyo 35,900 tonnes, up by 1,800 tonnes or 5.3% MoM
Osaka 39,800 tonnes, up by 5,200 tonnes or 15.0% MoM
Nagoya 19,400 tons, up by 1,800 tonnes or 10.2% MoM

Meanwhile, NSC is contemplating further reducing intakes of H beam orders from domestic steel distributors in February because the company's Kimitsu and Sakai works are under periodic equipment repairs.

For its part, NSC is poised to watch how things go with domestic demand for H beams while continuing a cutback beyond 70% in its H beam production. Also, the company is considering struggling to correct cave in H beam prices toward an early price improvement amid increased costs of raw materials and fuel products.

(Sourced from TEX Report Limited)