Domestic ordinary steel inventory lying with Japanese manufacturers and wholesalers was registered at 6 million tonnes (mn t) in Nov’21, recording a marginal decline compared to Oct’21. The inventory decreased for the first time in four months, but the rate of decrease was quite negligible at 0.14 mn t (0.2%), according to Japan Iron and Steel Federation’s preliminary report.
Inventory rate continues to drop
The inventory rate has been declining for three consecutive months, indicating that inventory adjustments are progressing.
The domestic inventory rate in Nov’21 stood at 167.5%, down 5% m-o-m compared to Oct’21. Domestic shipments increased by 2.7% m-o-m to 3.58 mn t in Nov’21, which further led to a decline in the inventory rate.
Domestic inventory rate in Aug’21 was 184.7%, which kept on declining in the latter months due to the recovery of demand and the progress of inventory adjustment.
Inventory for exports was 0.89 mn t in Nov’21, up by 0.02 mn t m-o-m, the first increase in three months. The combined inventory ratio for domestic and exports was 182.2% in Nov’21 against 127.7% in Oct’21.
~ Inputs from Japan Metal Daily
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