Strong Energy Development Lifts Global Seamless Pipe Price

International price of seamless oil well pipe and special pipe increases under recovering worldwide energy development activity. The price would increase by US$ 300-500 per tonne depending on grades and projects for April-September from same period of last year. Some users already accepted the higher price.

The demand for seamless pipe is increasing since April when oil companies are willing to develop new oilfield under high crude oil price at more than US$ 90 per barrel. The oil well pipe price recovers in USA where oil drilling rig count increases while the demand is also strong in other areas.

Special seamless pipe demand recovers mainly for oil refineries. The demand also increases for shale gas related plants due to active development of shale gas field. The pipe demand is expected to increase for natural gas related plants when low cost shale gas development will increase in Germany, Poland and Australia along with active US market.

An industry source sees the pipe demand shows no negative sign in later the year. However, the demand is uncertain when some users resist to wide price hike. The source expects the pipe price could peak temporarily after the aggressive price hike movement by the pipe makers from fiscal 2010 to first half of fiscal 2011.