Steel Pipe Demand for Gas Decreases by 5-10% in F2006

It is expected that the demand of the steel pipe for gas made by integrated Japanese steel manufactures increases by 5-10% in fiscal 2006 at ended of March, 2007 from a year ago. The steel pipe production made by 3 makers, Nippon Steel, JFE Steel and Sumitomo Metal Industries, decreased to 305,000 tonnes by about 10% in fiscal 205 from a year ago. The shipping of the steel pipe is good for building or plant. It is fascinated that the demand rebounds in 2 years. The makers are continuing decrease in output. There is high-possible that the inventory adjustment finishes in the first half of fiscal 2006, and the supply and demand become tight in this autumn.Japanese makers were forced in decrease the production of the steel pipe for gas in fiscal 2004 because of the iron source shortage in whole world. Consumers or dealers moved into get the volume of it. The supply and demand became tight. However, the iron source shortage blew over by degrees in fiscal 2005. The demand became low by the delay of the project starting. Japanese makers went ahead the decrease in output of it after July-September, 2005. 3 makers, Nippon Steel, JFE Steel and Sumitomo Metal Industries,’ production of the steel pipe for gas is expected to increase to 335000 tonnes in fiscal 2004 from fiscal 2003 at 305,000 tonnes for non-galvanized steel pipe, galvanized steel pipe and plastic lining steel pipe. The production declined to 305,000 tonnes in fiscal 2005 thanks to the decreased production of the makers.