Sumitomo Metal Industries will increase oil well tubular prices for shipping in January-March at the casing material by 10% from the same period of the previous year and tubing material by 5% as a result of the price negotiations with Petro China. Sumitomo realized the price hikes for consecutive quarters in the price negotiations. Oil well turbular export to China is likely to be 70,000 tonnes compared with 96,000 tonnes in fiscal 2004, the year that ended in March 2005. That to Petro China has around 70%, which is high-class oil well tubular for sour gas resistance as premium joint as a main. As for the price negotiations in fiscal 2005, Sumitomo increased the casing materials 40% for shipping in April-June, 17% for July-September, and 10% for October-December. On the other hand, it raised 40% for April-June, 27% for July-September, and 10% for October-December. There is oil field development under severe circumstances as there is an escalating price of oil. It is important for Petro China to secure high-class oil well tubular. That demand increases dramatically due to the current escalating price of oil. In particular, there are limited numbers of high-class oil well tubular suppliers. Sumitomo will deal with oil well tubular supply in the limited quantity mainly for high-class oil well tubular as a main while it is expected there is hardship to secure the amount of oil well tubular.
Japan Steel Scrap Composite Prices (Sangyo Press)
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