Japan Seamless Tube Makers Get US$ 200/t Hike for April-June

Japanese seamless steel pipe makers apparently concluded the price negotiation with a part of users including oil companies and US distributors to increase the export price by more than US$ 200 per tonne for April-June from January-March. The suppliers seek more than US$ 400 hike for nickel and molybdenum rich high grade 13 % chrome seamless pipe. US oil well tube market was oversupply condition from end of 2006 to 2007 after distributors built overstock through major import from China with expectation for higher market. The inventory adjustment progresses in 2008 when Japanese suppliers reduce the shipment since second half of 2007. Oil companies plan aggressive development projects under extremely higher oil price. The development increases the oil well tube. Under the favorable condition, the suppliers try to cover the higher cost for raw materials through the wide hike.