Sumitomo Metals to Hike Stainless Seamless Tube by 10%

Sumitomo Metal Industries announced on Wednesday the firm started negotiation to increase the seamless stainless steel tube price by 10% both for domestic distributors and contract users for April order. The firm tries to pass the higher cost of nickel ingot through the hike after 10% hike for February order. The firm could increase the price by around 10% for May order if nickel price would keep the high level when nickel price is already higher than price level, on which the firm decided the hike in April based. The firm covers the higher cost of nickel based on near US$ 19 per pound of nickel ingot in average for January-March at London Metal Exchange. The firm would increase the price by 10% additionally if the LME price would keep the level of average US$ 21.01 in March. The firm increased the price by more than 60% since June 2006 order to cover higher nickel ingot price. The firm will improve the profitability through the hike for domestic buyers under firm demand after the wide hike for export. The firm expects the high level production at plant in Amagasaki, Hyogo when the demand grows for energy including power generation, oil refining, petrochemical and oil drilling.