Japan Major Steels to Offer US$ 200/t or More Pipe Export Hike

Japanese major steel makers try increase steel pipe export price for April-June shipment. They would offer US$ 200 per tonne for welded pipe and seamless pipe and even higher price for high grade pipe products including seamless pipe with 13% chrome under higher raw materials cost and higher yen rate. The price negotiation, however, could be severe when oil companies and other users would resist higher steel price.

Steel pipe export market is better than the bottom when crude oil price is as high as more than US$ 80 per barrel. Gas development is also firm for shale gas and natural gas pipeline projects will consume more steel pipe in and after second half of fiscal 2011 starting April while gas market price is still on the way to recovery.

Japanese steel pipe makers try to increase the export price recently to improve the profitability under higher cost for iron ore and coal and higher yen rate. They offered US$ 100-150 per tonne of price hike for welded pipe and seamless pipe for January-March and the users are accepting some part of the higher offer.

However, a trading firm source said international pipe market price is uncertain when Chinese makers offer lower price to get order. The source said the users would resist higher offer by Japanese steel makers and the price hike is limited for Japanese steel makers’ offer.

Japanese steel makers try to increase the export price more in April-June to improve the profitability under potential higher raw materials cost and ongoing higher yen rate. They would offer US$ 200 per tonne of hike for carbon steel pipe and more hike for premium grade products.