Japan Linepipe Makers to Seek $100/t Export Hike in 2009

Japanese export price of UOE large-diameter steel pipe for line pipe increases to FOB US$ 1,650-1,700 per tonne for American Petroleum Institute (API) X65 grade with 30-48 inches diameter. Some Japanese makers eye additional US$ 100 hike in negotiation for 2009 shipment under tight plate materials supply.

Japanese suppliers realized FOB US$ 1,650-1,700 per tonne of export price for X65 grade products with 30-48 inches diameter depending on the condition. They enjoy the favorable market condition when they got US$ 1,500-1,600 for X52 grade products.

The demand keeps firm when major natural gas pipeline projects start in Russia and Australia while Thai project consumes more than 100,000 tonnes of steel pipe. The demand is expected to keep firm in and after 2009 when China starts second batch of order for second phase of West-East natural gas project.