Japanese export price of UOE large diameter line pipe keeps increasing under tight supply of the material plate. Japanese makers offer FOB US$ 1,200-1,300 per tonne for non sour service products with X65 grade of American Petroleum Institute, which is around US$ 100 higher than level of October 2006-March 2007. The price could increase more when major projects starts construction toward 2008 while Nippon Steel, JFE Steel and Sumitomo Metal Industries already filled order book for the year to March 2008. The 3 major makers offer more than FOB US$ 1,000 per tonne for products with X50 grade and 30-48 inches diameter and US$ 1,200-1,300 for products with X60 and higher grades. Some buyers already accepted the higher price. The UOE large diameter steel pipe demand keeps strong for line pipe projects when the major gas transport line construction projects continues mainly in Middle East in 2007. Another boom is expected in 2008 for major projects with 1 million tonnes pipe consumption including Nord Stream between Russia and Germany, Troll Field between Norway and Europe and second phase of East West gas pipe line from Hsinchiang Uighur Autonomous Region to Shanghai and coastal area of China. Japanese plate steel supply is very tight due to strong demand for shipbuilding and construction machinery. The plate export price keeps increasing mainly for shipbuilding application. Japanese trading firm sources said Japanese export price of UOE large diameter pipe will keep firm under tight supply of plate and the pipe.
Japan Steel Scrap Composite Prices (Sangyo Press)
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