Sumitomo Metals to Hike Stainless Seamless Pipe by 10% in Japan

Sumitomo Metal Industries announced on Thursday the firm increases the selling price of nickel series seamless pipe by 10% for domestic distributors and contract users for August order to cover higher nickel price. The firm plans to increase the price by around 5% for September and after order depending on nickel price. Sumitomo Metals, which produces stainless seamless pipe mainly at Steel Tube works in Amagasaki, Hyogo, keeps full capacity operation to meet strong demand for energy industry including power generators, petrochemical plants and refinery both at home and abroad. The firm expects the demand keeps strong for a while. Major stainless raw materials of nickel price surged since spring of 2006. The price increased to averaged US$ 12.06 per pound in July compared with average US$ 6.72 in January-March, US$ 9.04 in April-June and average US$ 6.69 in 2005. Sumitomo Metals increased the selling price by 10% for June order to cover the higher cost. However, nickel price increases after July. The firm decided to increase the price again for August order when the margin is squeezed by higher cost price. The finished domestic inventory adjustment will support the hike. The firm already increased the export price, which reached the level more than the peak in 2005. Sumitomo Metals’ Steel Tube works plans to produce 33,000 tonnes of stainless tube in fiscal 2006 ending March 2007 compared with 28,000 tonnes in fiscal 2005 and 26,000 tonnes in fiscal 2004.