Sumitomo Metals Promotes Out-Out Supply Strategy for Seamless Steel Pipe

Mr. Hiroshi Tomono, the president of Sumitomo Metal Industries and Vallourec & Sumitomo Tubos do Brazil (VSB) in Brazil, gave an overview that VSB will enter full operation in the second half of 2012 at a press interview in Brazil. He evaluated VSB is smoothly starting its first operation including the current start of an electric furnace and continuous casting operation from the furnace to the casting line with successful billet output with good surface quality. VSB is well prepared for the first commercial order receipt and shipment of seamless steel pipe, he said.

Mr. Tomono showed an expectation for the global and steady demand growth for seamless steel pipe though economies are currently unstable in the U.S.A. and Europe. He said energy and fuel usages are globally increasing and rig counts maintain high level. He also gave a view that the demand growth is even stronger in Brazil than the world average when Petrobras is actively developing gas and oil fields in the country.