Sumitomo Metals Raises Seamless Tube Price by 20% for December

Sumitomo Metal Industries announced on Friday the firm raises the selling price of nickel series seamless steel tube for domestic specific users and dealers by 20% effective for December contracts. The firm aims to improve the price gap between domestic and offshore markets and to keep stable supply of the products. Sumitomo Metals has announced the hike twice this year. The previous hike was for the contracts in and after June 2007.The supply and demand balance keeps tight with the strong demand for energy industries such as petroleum processing, petroleum chemistry or electric generation. Especially the export of boiler tube is increasing for heat power plants in China. Sumitomo Metals’ export price largely exceeds the domestic selling price.The firm had raised the selling price eight times until July 2007 contracts and adjusted the price along nickel price fluctuation after July. The firm decided the latest hike for December contracts when the export price became 20% higher than domestic price and the domestic profitability is worse.