Nippon Steel Corporation said that Japan's Tokiwakai group of domestic steel distributors held in stock a total of 196,400 tonnes of H beams across the nation at the end of May 2010, up by 14,300 tonnes or 7.9% MoM, when the nationwide H beam inventory ratios averaged 2.45%, up from by 1.92% MoM.

The Tokiwakai group is concerned with domestic sales of steel products from the nation's largest integrated steelmaker. As a result, Tokiwakai's H beam stocks increased for two consecutive months, which ensued from a more fall in shipments out of stock than in inflows into stock.

In the breakdown by main trading areas, Tokyo accounted for 41,300 tonnes, up by 2,100 tonnes or by 5.4% MoM; Osaka 53,000 tonnes, up by 8,300 tonnes or by 18.6% MoM and Nagoya 25,100 tonnes, up by 1,300 tonnes or 5.5% MoM.

Meanwhile, NSC is poised to execute an enhanced cutback beyond 70% in its H beam production from July onward. For the motivation, the company points out an excessive level of Tokiwakai's H beam stocks despite less than 200,000 tonnes in total this time, given the current movements of H beams at home.

Besides, the company is contemplating revising what it charges for H beams with close attention to the prospects of construction demand. The current domestic market for H beams is assessed at around JPY 84,000 per tonne ex warehouse in the Kanto area.

(Sourced from TEX Report Limited)