Weakening 13% Chrome Seamless Pipe Demand

World demand for 13% chrome seamless steel pipe, which was strong under higher oil price, shows sign to peak out. The sales volume is weakening though the inventory decreases in USA and Canada since end of 2006. Japanese interests increase the concern for weak market when the Japanese export price turned into weak in the year. World oil majors keep aggressive development for new oil resources keeping high level of oil well tube purchasing. The demand for 13% chrome seamless pipe increased to annual 250,000 tonnes in 2007 and 2008 and to 300,000 tonnes in future compared with current 200,000 tonnes, according to Japanese major maker. Japanese trading firm sources see the demand is weakening when the inventory keeps high in USA and Canada. Some users shift from 13% chrome products to Chinese seamless pipe. With the challenging market, Japanese export price is weak at averaged US$ 5,000 per tonne for 13% chrome products. Japanese majors including Sumitomo Metal Industries, JFE Steel and Tenaris NKK Tubes expand the output capacity of 13% chrome products by more than 50,000 tonnes per year. They start to control the production level to the weakening demand level to keep the high level export price.