Japan Major Steels to Offer US$ 300/t Hike for UOE Line Pipe

Japanese integrated steel makers are preparing to increase the UOE line pipe export FOB price by more than US$ 300 per tonne for July-September shipment. They try to pass higher cost for iron ore, coking coal and raw materials along with tight plate mill supply ability.

The makers secured export orders at FOB US$ 1,200-1,300 per tonne for American Petroleum Institute X65 grade pipe with 30-48 inches diameter. The strong demand lifted the export price with aggressive development of natural gas pipeline worldwide. Japanese steel makers including Nippon Steel, Sumitomo Metal Industries and JFE Steel got 230,000 tonnes orders for first batch of the procurement for second phase of Chinese west-east line pipe project.

Japanese integrated steel makers are suffered from extremely higher raw materials price for fiscal 2008 started April. They also try to secure the plate supply for shipbuilding and construction machinery. An integrated steel source said the maker should increase the UOE export price by more than US$ 300 per tonne to secure the material plate for July-September.