Sumitomo Metals to Hike Seamless Pipe by Another 10%

Sumitomo Metal Industries announced on Monday the firm increases the selling price of carbon and alloy steel seamless pipe by 10% for domestic distributors and contract users for July production. The firm decided the additional hike to cover higher raw materials cost than expected after 15% hike for April production. The firm also increases the selling price of welded steel pipe by 10-15% for July production. The additional hike is for shipment from end of July. With the hike, the domestic price level increases to around double through 9 hikes since 2001.Seamless pipe demand is expected to keep strong for energy industry in fiscal 2008 started April due to high level oil price. Sumitomo Metals gets strong order to increase the supply from the domestic users including construction and industrial machinery makers and plant constructors. The raw materials cost increases for iron ore and coking coal more than expected under tight supply. Sumitomo Metals tries to keep stable supply by securing profitability even with the extremely higher cost price through the hike while the firm tries to improve the cost structure to cover part of the higher cost. Sumitomo Metals expects the export represents around 80% of the 1.17 million tonnes of seamless pipe sales.