Seamless Steel Pipe Price Maintains to increase in Second Half of F2011

International seamless steel pipe market price is expected to continue increasing for second half of fiscal 2011 ending March 2012 when energy demand is recovering for oil or gas in the world. The market price increased by US$ 400-500 to US$ 4,500-5,000 per tonne for 13% chrome seamless steel pipe from the beginning of 2011 and by US$ 200-300 to around US$ 2,000 for middle grade steel pipe such as special screwed heat-treated oil tube.

Crude oil price is around US$ 85 per barrel and gas price is around US$ 3 per MMBtu, and are going into temporal adjustment phase due to turmoil in the financial markets. On the other hand, US rigcount is 319 bases higher at 1959 on 12 August than a year earlier level, which which is close to 2014 on September 2008. The demand is strong for oil in other areas. One large dealer source said the supply and demand is tight for oil tube for mainly long contract by oil major. The demand for gas is increasing when gas power plant is replaced from oil power plant due to regulation for SOx and NOx, and it activates shale gas development.