Inventories of key flat-rolled carbon steel products held by Japanese steel producers, coil centers and distributors nationwide by the end of September totalled 4.42 million tonnes, down by 1.1% or 49,000 tonnes from end-August, according to the latest data prepared by Nippon Steel.
Though the dip marked the first month-on-month reduction in two months, stocks of hot-rolled (HR), cold-rolled (CR) and coated coils and sheets remained above the 4 million tonnes threshold for the 13th straight month, Mysteel Global noted.
Industry sources noted that flat-rolled stocks usually rise in August as end-users take summer holidays and consumption slows, but in September they usually fall back. This year, the decline during September was slightly more pronounced as consumers of flats such as appliance makers and auto manufacturers have stabilized their production.
Imports remain a factor and here, the continued weakness of the Japanese Yen against the U.S. dollar is helping, making imports less attractive. The latest data from Japan Iron & Steel Federation shows that during September, Japan’s total imports of carbon steel products declined by 8% from August to 355,098 tonnes – almost unchanged on year.
Within the total, imports of hot coils dipped by about 5% from August to 121,641 tonnes, but those of cold-rolled and galvanized sheets both climbed marginally from August to 64,041 tonnes and 85,032 tonnes respectively.
Written by Russ McCulloch, russ.mcculloch@mysteel.com
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.
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