Japan Steels Raise UOE Large Diameter Pipe Export Price

Japanese export price of UOE large diameter steel pipe for pipe line increases due to tight supply of plate steel. Japanese integrated steel makers are getting FOB US$ 1,700-1,800 per tonne for X65 grade of American Petroleum Institute, which is around US$ 500 higher than the level in half year to March 2008. The steel makers focus on orders for high grade items under limited availability of plate. The demand of large diameter pipe keeps expanding due to aggressive development of natural gas resources worldwide. Major projects in Russia, China and Australia are planned to consume more than 1 million tonnes of pipe. However, plate supply is limited under strong demand for shipbuilding and construction machinery while plate price surged with pressure by higher cost for iron making raw materials. Japanese steel makers increase the offer price to FOB US$ 1,400-1,500 per tonne for X52 grade of API, which also US$ 500 higher than the half year to March 2008. They are also reluctant to fix the future price when they are already booked for the year ending March 2009 and the raw materials condition is unknown for the next year.