JFE Steel to Raise Domestic Steel Tube Price by 15%

JFE Steel announced on Thursday the firm raises selling price of steel tube by 15% to domestic users and dealers for March contracts. The hike covers all items including gas pipe, electric resistance welded steel pipe, seamless steel tube and UOE steel tube. The firm already started price hike announcement to domestic customers.

Spot raw material prices are rising such for coking coal to reflect supply tightness due to floods in Australia. JFE Steel explained the firm forecasts raw material prices would increase by about 15% in and after April. On the other hand, supply and demand balance is tightening for steel products, mainly for export. The firm decided price hike of steel tube to maintain stable product supply.

Domestic demand for steel tube maintains weak from manufacturing industry and construction market. JFE Steel estimates domestic steel tube sales for April-September 2011 would sustain the level as same as the volume for October-March. The firm plans to keep output adjustment of gas pipe along with actual demand since gas pipe demand still represents below 70% of pre-shock level.

JFE Steel may launch additional price hike in or after April.