Japan Seamless Steel Pipe Export Price Exceeds US$ 6,000/t

Japanese export price for seamless steel pipe with 13% chromium increased by around US$ 1,000 to more than US$ 6,000 per tonne averagely in the half year to September 2006 from the same period of 2005 at the spot price for threading products used for oil well. The demand is much increasing for seamless steel pipe with 13% chromium worldwide. The price is higher by 4-5 times than the export price for low-grade carbon steel pipe at average US$ 1,200-1,500 per tonne.Japanese 3 major steel pipe makers, JFE Steel, Sumitomo Metal Industries and NKK Tubes are expanding output capacities for seamless steel pipe, while world oil majors continue to demand the supply expansion to the makers. The supply would maintain tight for a while.Oil well pipe demand is strong worldwide when oil majors actively try to develop new oil fields under high crude oil market. The needs are especially increasing for high-grade oil well pipe with high corrosion resistance which can be laid in the high temperature and high pressure condition inside the deep oil well.