Japan Domestic Seamless Tube Price Increases

Market price of seamless steel pipe will increase in the distributors’ market by the end of June around Tokyo after domestic major makers increased the selling price by 10-15% for April shipment and the distributors accepted the hike. The makers try to increase the contact price for the users including construction machinery and plant. A maker source said the users agreed to increase the price at almost what makers seek in order to secure stable supply. The makers are likely to conclude the price hike negotiations to get near full amount of the hike. Japanese seamless pipe export surges to meet growing demand worldwide for energy. A source from major steel maker said the maker cannot meet all of the higher new and existing orders. Users increase the order to Japanese steels mainly for high alloy oil well tube. The demand is also firm for domestic users including industrial and construction machinery. Domestic shipment lots are smaller with various items and the shipment price is much lower than export price of oil well tube. Domestic steels decided to increase the domestic selling price by 10-15% including higher extra charge of mechanical tube for April shipment. The distributors around Tokyo increased the reselling price in early May to cover the higher cost price. Some distributors increased the reselling price in early June and the higher price was almost accepted the users. The higher price is expected to be accepted by buyers including processors by the end of June. Makers’ contract price hike negotiation also progresses with construction machinery and plant makers and shipbuilders. Some users already accepted almost all of price hike as steels sought. Some users still resist but they are likely to accept the hike by the end of June.