Japanese listed 4 welded steel pipe makers posted lower consolidated recurring profit for first half of fiscal 2011 started in April compared with the figures in same period of fiscal 2010. The major earthquake in March apparently impacted on their users’ activity.
The pipe demand significantly decreased soon after the quake. The demand remained low for construction despite the rebuilding in the damaged area. The makers could not pass higher raw material cost on the pipe selling price under the slow demand. Maruichi Steel Tube and Mory Industries posted higher sales in first half of fiscal 2011 compared with the figures in same period of fiscal 2010 while Sumitomo Pipe & Tube and Araya Industrial posted lower sales. Maruichi Steel Tube increased the sales in Japan, North America and Asia. Mory Industries increased the sales from 4 businesses while the firms’ main business of stainless steel pipe posted lower sales. The pipe demand for automobile recovered to the pre-quake level in summer. However, the demand for construction would stay at low level in and after November. The demand uncertainty remains under historical high yen exchange rate and the flood in Thailand.