JFE Steel Continues Full Production of Seamless Steel Tube

JFE Steel keeps full production of seamless steel tube lines thanks to the demand recovery for oil tubes and special tubes. JFE Steel’s sales volume for seamless steel tube increased by about 50% for oil tube in 2010 from 2009 and by about 30% for special tube. The firm aims to offer price hike of steel tube since the firm’s profitability is impacted by higher yen rate and higher raw material cost.

Market demand for seamless steel tube has improved along the demand growth for energy in emerging countries. Shale gas development projects are increasing in the U.S.A. Natural gas pipe line projects are expected to start in Australia.

JFE Steel’s sales increased to 60,000 tonnes per year for 13% chrome seamless steel tube applied to oil tube and line pipe. The sales volume recovered to the higher level than pre shock. As for special tube, the order is increasing rapidly for high alloy steel tube applied to petroleum refineries or electric power plants mainly in India and Middle East.

JFE Steel raised the selling price by US$ 300 per tonne in the first half of fiscal 2010 to reflect material cost upsurge. Moreover, the firm announced the additional price hike by US$ 100-150 in the second half of fiscal 2010. The firm supposes the previous price hikes were insufficient to cover recent material cost upsurge and strong yen trend. The firm’s profit for export is impacted.