Sumitomo Metal Industries is increasing seamless steel oil country tubular goods shipment with long term-supply deal. Sumitomo Metals and 2 independent oil companies in India and North Africa reached agreement for long-term supply deal of OCTG.
Sumitomo Metals supplies about 60% of OCTG under long-term contract. The firm keeps relatively steady sales for oil majors and other users while OCTG demand collapsed during global recession. The firm aims to increase OCTG shipment under long-term shipment when the production capacity of seamless pipe increases by 300,000 tonnes per year after the starting operation of steel works in Brazil, which jointly established with Vallourec, in mid-2010. Sumitomo Metals concluded new long-term supply contact with 2 independent oil companies in India and North Africa. The firm supplies 30,000 tonnes of seamless pipe including premium joint and high-end grade pipe from 2008 to 2011 for Indian user while the firm supplies 2,000-3,000 tonnes of premium joint and other grade per year from 2008 to 2013 for North Africa. Sumitomo Metals sustains relationship with oil majors and targets to conclude the long-term supply deal with national oil company and independents.Japan Steel Scrap Composite Prices (Sangyo Press)
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