By the end of April, inventories of the key flat-rolled carbon steel products held by domestic steel producers, coil centers and distributors across Japan totalled approximately 4.5 million tonnes, down for the second month by another 0.4% on month, according to the latest data from the compiler of the data, Nippon Steel. Market sources observed that the further trimming of output by producers was the most likely reason for the decline in the overall total.
The total comprises hot-rolled (HR), cold-rolled (CR) and coated coils and sheets, and compared with April last year, it was 22.3% higher, Mysteel Global calculated based on the company’s data.
A Nippon Steel official commented that steel producers have been adjusting the output volume of flats to match actual demand, and dealers have also been trying to order the smallest volume possible to keep their stock levels at a minimum.
“Steel demand from manufacturers has softened temporarily due to delays in receiving components from China, due to logistics disruptions caused by lockdowns in places such as Shanghai,” she noted. “But the lockdown there was lifted by end of May so whenever deliveries become smoother, steel consumption among end-users should improve and flat stocks should be thinner,” she predicted.
Japan produced 4.71 million tonnes of HRC, CRC and galvanized sheets in total in April, down 11.4% on year and 13.3% lower on month, Mysteel Global calculated based on the latest data from the Japan Iron & Steel Federation (JISF).
A Tokyo-based flats trader added that April stocks usually increase but this year, the total declined even by a small range. “Arrivals of imported flats were lower in April and I can’t see imports increasing in coming months because the weak yen is making dollar-priced flats more expensive for domestic buyers. So going forward, Japan’s flat stocks should be adjusted lower,” he said.
Japan imported a total of 190,368 tonnes of HRC, CRC and galvanized sheets in April, down 32% on year and 23.7% lower on month, according to the JISF data.
Written by Yoko Manabe, yoko.manabe@mysteel.com
Note: This article has been published in accordance with an article exchange agreement between Mysteel Global and SteelMint.
.jpg)
Leave a Reply