Sumitomo Metals Hikes Domestic Seamless Pipe Contract Price by 10%

Sumitomo Metal Industries will conclude the seamless steel pipe price hike negotiation with domestic major contract users including construction and industrial machinery makers by end of the month to increase the price by 10% after the talks since July. The firm already increased the domestic price 6 times since 2001. The users apparently accept the 7th hike under the tight supply with boomed demand at home and abroad.Sumitomo Metals increased the seamless pipe price by 10% for carbon and alloyed steel products for distributors and contract users for May order or July production. The hike is first attempt since April 2006 and the price increases by more than 70% for the 7 hikes. The distributors already accepted the hike under tight supply. The dealers try to pass the higher cost price on the reselling price. Some of the contract users were resisted the hike depending on the contract terms. The construction machinery makers are busy with strong order from China and Europe and start to accept the seamless price hike to secure the materials stably. The industrial machinery makers already accepted the hike and Sumitomo Metals is likely to conclude the price hike negotiation by end of September.