The domestic inventory of three thin plate manufacturers in Japan were at 4.53 million tonnes (mn t) in end-October, an increase of 0.2 mn t compared to end-September.
Mill-level inventories increased by 0.09 mn t to 2.08 mn t, wholesaler inventories increased by 0.06 mn t to 0.95 mn t, and coil centre inventories increased by 0.04 mn t to 1.48 mn t.
The inventory ratio, which is the inventory divided by the production volume, edged up to 2.86 months in October compared to 2.61 months in September.
Meanwhile, the shipment volume of the coil centre, considering the working days, is expected to increase from the previous month, according to SteelDaily.
Breakdown of inventories
In terms of product, hot-rolling inventory was at 2.11 mn t, an increase of 0.06 mn t, cold-rolling was at 0.97 mn t, an increase of 0.008 mn t while surface treatment saw an increase of 0.13 mn t to 1.43 mn t.
The inventory rate was 2.82 months for hot spread in October compared to 2.78 months in September, 3.29 months for cold spread and 2.69 months for surface treatment.
Demand for thin plates
The manufacturers of thin plates are preparing to cater to high-level production plans of the automobiles industry in Japan, and also have been increasing the number of thin plates as demand is on a recovery trend. The manufacturers are maintaining solid performance in downstream segments such as construction and industrial machinery. It is expected that the inventory of the three products will reach a moderate level.
Outlook
Even as the effects of automobile production cuts continue, the sector is showing recovery, and it is expected the inventory of thin plates, which has increased at the moment, will decrease gradually.
The demand outlook for October-December shows a recovery trend, rising 2.6% from the previous quarter and 6.7% from the same period of the previous year, according to Japan’s Ministry of Economy, Trade and Industry.
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