Japan OCTG Export Price Rises by US$ 250-300 for July-September

Japanese steel pipe makers concluded the export price negotiation for seamless oil country tubular goods to increase by FOB US$ 250-300 per tonne or more for the shipment in July-September compared with the level in the end of March. The Japanese makers try to increase the price by US$ 150-200 for the shipment in October-December from July-September. However, the makers would experience the hard time to increase the price when Chinese makers increase the export of low-priced OCTG and the demand may decline due to the oil disaster by BP.

Oil companies are positive in the development of oilfield when crude oil price stays high level at more than US$ 75 per barrel. The demand increases in USA especially for small diameter pipe for shale gas development with many shale gas development projects while US distributors are finishing inventory adjustment.

The number of drilling rig counts in USA was 1,527 on Friday, up by 651 from a year earlier. The OCTG inventory is decreasing in USA when the import from China stops due to the antidumping determination.

International OCTG price increased due to the strong demand and the increase in steelmaking material cost. The Japanese export price increased by averaged US$ 250-300 per tonne for July-September shipment for various products including 13% chrome seamless and other normal grade products.

The Japanese makers eye to increase the export price by US$ 150-200 per tonne for October-December shipment from July-September. However, the international price could decline when the Chinese makers increase the export of low-priced products to Asia and Mideast and the development of deep oil well may stop due to the disaster by BP.