Nippon Steel Hike Steel Pipe by 20% in April

Nippon Steel announced price hike for all steel pipes by 20% effective for April shipment for all domestic users. The offer seems to be approved by both domestic wholesalers and large-contract users. The firm is suffered from higher production costs due to upsurge of material prices and freights. Supply of hot rolled coil and plate keeps tight, main materials for steel pipe. Moreover, Japanese steel pipe makers keep full operation.Demand for steel pipe keeps strong from shipbuilding, automobile or construction machinery industries while slower from building constructions due to the influence of revised Japanese building standard law. Steel pipe inventory at dealers’ sites is at the moderate level thanks to the makers’ output reduction.Nippon Steel decided the hike to keep stable supply despite of higher material costs. The firm will examine additional hikes as the situations of material price negotiations such for coal.