Sumitomo Metals Hikes Stainless Seamless Pipe by 10%

Sumitomo Metal Industries announced on Thursday the firm increases the selling price of nickel series stainless seamless pipe by 10% for domestic distributors and contract users for December order to cover higher nickel price. The firm decided to increase the price again after 2007 if nickel price increase more. Sumitomo Metals produces stainless seamless pipe mainly at pipe plant in Amagasaki, Hyogo. The firm expects the high level production could keep longer when the demand increases for energy industry including power plant, petroleum refinery, chemical plant and oil development at home and abroad.Nickel price surges since spring of 2006. The price increased to averaged US14.83 per pound and US$ 14.57 in November from US$ 13.22 in July-September, US$ 9.40 in April-June, US$ 6.72 in January-March and US$ 6.69 in 2005. Sumitomo Metals increased the selling price of stainless seamless pipe by around 30% after June order. However, the firm decided to increase the price to improve the profitability when nickel price keeps increasing. The firm expects the market will accept the higher price when the demand keeps firm. The firm already increases the export price. Sumitomo Metals’ pipe plant in Amagasaki plans to produce 33,000 tonnes of stainless seamless pipe in fiscal 2006 ending March 2007 compared with 28,000 tonnes in fiscal 2005 and 26,000 tonnes in fiscal 2004. The firm increases the output more in fiscal 2007 after the expansion for boiler tube making facility.