Nippon Steel decided to increase selling price of SUS 304 grade stainless pipe by 50,000 yen for welded pipe and by 70,000 yen for seamless pipe both for distributors and contract users for July rolling and August shipment to cover higher cost for nickel. The firm operates the mills at full capacity with firm demand for welded pipe with more than 8 inches diameter for offshore liquid natural gas plant since autumn 2005. The firm also enjoys firm demand of smaller sized welded pipe, of which the market is mainly for distributors, for papermaking and chemical plants after the inventory adjustment. Seamless pipe demand is also firm as welded pipe.However, the firm is pressured by increasing cost for raw materials, energy including oil and gas, materials and equipments and freight. Especially, nickel price increases to record US$ 10 per pound and averaged US$ 8.7-9 in April-June from U$ 6.7 in January-March and US$ 6 in second half of 2005. Nickel price could increase more under tight supply in China and world and supporting fund money.
Japan Steel Scrap Composite Prices (Sangyo Press)
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