Kobe Special Tube Hikes Ni Stainless Seamless Tube by 20%

Kobe Steel group’s Kobe Special Tube announced on Thursday the firm increases the selling price of nickel series stainless steel seamless tube by around 20% for domestic shipment for June order. The firm tries to cover higher nickel cost through the hike for distributors, processors and contract users. The firm increases the price by around 90% through the 7 times of hikes since June 2006 order. The material of nickel ingot price surged since spring 2006. The price reached averaged US$ 23.67 per pound in May even after the surge to US$ 18.80 in January-March and US$ 22.80 in April from US$ 6.69 in 2005 average. The price still keeps the high level despite of the recent drop. The firm said the firm cannot cover all the higher cost when the price hike takes a couple of months of time lag. The firm decided the additional hike when the firm cannot absorb the extremely higher cost only by own cost cutting effort. The firm increases the selling price based on average nickel ingot price in April and May. The firm makes stainless seamless tube at monthly 1,300 tonnes of full capacity operation at Chofu plant in Yamaguchi. The firm plans to expand the output to 1,400 tonnes in the year and to 1,500 tonnes in next year by improving productivity. The firm expects the tight supply condition could continue when the users require more products under strong demand for energy, chemical plant and semiconductor industry.