Sumitomo Metals Increases Domestic Seamless Pipe by 20%

Sumitomo Metal Industries increases domestic carbon steel and alloy seamless tubular products by 20% for the shipment in April and began the price negotiation, announced on Wednesday. The leading seamless pipe maker with around 50% share of the domestic market eyes 20% price hike for welded tube price. The firm could change the price quarterly if Japanese steel makers agree quarterly steel raw material pricing with mining companies.

The seamless pipe price hike is the first attempt since July 2008 production by the company. The firm tries to seek the April hike to users in individual negotiations. The price hike covers all buyers including distributors and contract users.

Steel demand increases in China and East Asian countries. The demand is expected to keep increasing. With the higher demand, mineral resources price increases and iron ore and coal cost should increase widely for fiscal 2010 starting April. Cost also increases for ferroalloy and other steel making raw materials.

Seamless tubular demand is increasing from the bottom in April-September 2009. The export increases due to the firm demand for the offshore energy development and the domestic shipment increases to the construction machine and general machinery.

Sumitomo Metal Industries tries to keep stable supply through the price hike. The firm is also in negotiation with offshore buyers both for spot and contract buyers seeking wide hike for oil well tube and other pipe products.