Sumitomo Metals to Hike Seamless Pipe by 10%

Sumitomo Metal Industries announced on Tuesday the firm increases the selling price of seamless steel pipe by 10% for domestic market for May order or July production. The firm tries to keep the stable supply by improving the profitability through the hike. The attempt is the first hike since April 2006 and 7th hike since 2001 lifts the price by total more than 70%. The firm increases the price of carbon steel and alloyed steel products for distributors and contract users including construction and industrial machinery, plant building and further processing. Seamless pipe demand is strong worldwide due to active energy development. Sumitomo Metals cannot meet all of the demand and rejects 10-20% of order from domestic buyers despite of the full capacity operation at Wakayama works. The firm decided to increase the relative lower domestic price to cover the price gap with export market. The firm plans to produce 1.2 million tonnes of seamless pipe in fiscal 2007 ending March 2008, 80% of which is for export. The firm has around 60% share in annual 400,000-500,000 tonnes of domestic market.