Black gas Pipe Price to Keep High level around Tokyo

The market price of the black gas pipe made by integrated steel makers and the carbon steel tube of general structure, STK, made by them and welding pipe makers keeps high level in the first half of fiscal 2006 ending March 2007, and is expected to keep same level after autumn around Tokyo. Black gas pipe price is at around 115,000 yen per tonne for 50A without screw, STK price is at around 103,000 yen for STK400 with 48.6 millimeters diameter and 2.6 mm thickness. The dealers’ shipment was low for black gas pipe and STK around Tokyo because the demand for construction continued dull tone from the beginning of this fiscal year. However, the demand for construction in the private sector is recovering in mainly capital region after July. It is expected excessive inventory in the market blow over within the first half of fiscal 2006 since the integrated steel makers are continuing reduced production for black gas pipe after the last half of fiscal 2005. Meantime, the dealers’ inventories for STK doesn’t increase because they had been reduced the order. Welding pipe makers are continuing decrease the output for STK to keep the market price. It seems that the market price of both products don’t change in autumn. It is expected the supply and demand for steel source becomes tight for mainly hot rolled steel coil. Black gas pipe is prospected to be tight. STK is seemed to keep the supply and demand. Dealers think to strength their sales stance, and wouldn’t sell low price.