Japanese seamless steel pipe supply is expected to become even tighter in the second half of fiscal 2007 ending March 2008 when the demand maintains strong for domestic and export market and Sumitomo Metal industries will enter scheduled refinement for October-December 2007. The supply shortage might become more remarkable in domestic market in the demand season after October.Seamless steel pipe export keeps active mainly for high grade products due to strong development by oil majors with higher oil price. The demand is expected to maintain the strong trend for a long term, though inventory adjustment occurred for some sizes in the first half of fiscal 2007. Domestic demand is also firm for construction machineries, industrial machines and chemical plants.In fiscal 2006, the supply was tight especially for middle size products. In fiscal 2007 the demand became active for construction machineries, industrial machines or heat converters. Domestic seamless pipe makers keep full-operation due to shortage of small size products as well as middle sizes.
Japan Steel Scrap Composite Prices (Sangyo Press)
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