Posted on 03 Aug 2016
Steel-sheet inventories dropped to the lowest in 28 months at the end of June on production cuts by steelmakers coupled with strong exports.
Combined inventories for hot-rolled, cold-rolled and surface-treated steel sheet totaled 4.02 million tons, down 3.8% from the prior month. The 160,000-ton decline for June brought inventories close to 4 million tons, which is considered a suitable level. Steel sheet is used in consumer electronics, along with automobiles and construction.
Domestic steel-sheet production in June fell 11% versus 2014 as steelmakers continue to produce at a low level.
Meanwhile, blast-furnace steelmakers forecast a rebound in demand from the automobile and construction industries in the second half of fiscal 2016.
Nippon Steel & Sumitomo Metal has announced a roughly 20% price hike on steel sheet. Other steelmakers also have begun raising prices since spring. Many steel processing companies and wholesalers are buying steel that reflects higher prices since July.
