Japan Seamless Tube Makers to Up Export Price by US$ 200/t

Japanese major seamless steel tube makers will offer hike of oil well tubular export price by over US$ 200 per tonne effective for April-June shipment against American dealers or oil companies. The makers will also raise the export price for long-term contracts with oil majors by over US$ 200 per tonne. The makers expect material and freight costs would increase considerably. Ferroalloy such as chrome or molybdenum price is rising rapidly. Tube makers will reflect these costs on export price as well as steel supply tightness.Demand for oil well tubular keeps strong. Oil majors intend to develop new oil mines as long as oil price stays high. High grade oil well tubular is being requested with high corrosion resistance in high temperatures and high pressures since oil majors develop deeper wells.US dealers had purchased high-grade oil well tubular in advance since the supply maintained much tighter. At the same time, US import of Chinese oil well tubular increased. Consequently oil well tubular inventory increased in USA from the end of 2006 to 2007. US dealers have tried to adjust their inventories. US tube makers reduced their supply. Recently the inventory is decreasing.