Sumikin Stainless Steel Tube to Raise Welded Tube Price Again

Sumikin Stainless Steel Tube Corporation will raise the selling price for welded stainless steel tube again by 40,000 yen per tonne for distributors and contract users for February contracts and March-April shipment. The firm raised the selling price 8 times since 2006.The firm decided the additional hike due to upsurge of nickel price. Nickel price at London Metal Exchange was average US$ 16.19 per pound in December-January, up by more than US$ 1 from November-December. The price stays much higher at average US$ 17.89 in February.The firm responded against the rising material price to sustain the supply system, which raised the selling price by 40,000 yen per tonne for contracts in January 2007 and by total 300,000 yen through previous 7 times hikes. However, the firm decided the additional hike when cost price for stainless steel coil increased due to higher nickel price.Demand for welded stainless steel tube is strong for chemical, shipbuilding, paper making and information technology industries while the market inventory is low. In addition pipe makers are facing difficulty in procurement of stainless steel coil. Welded pipe supply keeps still tighter.