JFE Steel Tries Seamless Pipe Export Hike by US$ 400-500/t for Apr-Sep

JFE Steel aims to raise export price of seamless steel pipe for oil well and specialized applications by US$ 400-500 per tonne for April-September 2011 shipment. The firm is talking with offshore oil companies and other seamless pipe users in order to cover cost upsurge of raw steel materials, negative impact of strong yen trend and steel pipe price down after Lehman Shock.

JFE Steel’s sales volume of 13% chrome seamless oil well pipe is currently increasing by around 20% compared with a year earlier. Demand for oil well pipe is increasing mainly in Asia, the Middle East and the North Sea when crude oil market price is surging. As for specialty seamless steel pipe, the demand is favorable mainly in India and the Middle East to adopt the products to electric power plants and oil refineries. JFE Steel’s Chita works is under full production of seamless pipe.

JFE Steel successfully raised seamless pipe export price by US$ 300-400 per tonne for distributors and by US$ 400-500 for spot projects in fiscal 2010 ended in March 2011 compared with the previous fiscal year. The firm considers additional price hike is necessary for stable product supply when raw material costs strongly rise and yen exchange rate keeps strong against foreign currencies in fiscal 2011.

JFE Steel could raise the export price by US$ 200-300 mainly for distributors effective for April-June 2011 shipment compared with January-March. The firm tries to realize additional US$ 200-300 hike for July-September 2011 shipment. For six months of April-September 2011, the price hike range would total US$ 400-500.