Sumitomo Metals Agrees in Seamless Pipe Hike with Construction Machine Makers

Sumitomo Metal Industries agreed in price hike of seamless steel pipe by 20% effective for April 2010 with domestic construction machine makers, large-lot users of seamless pipe. The firm has also agreed in the price hike with other domestic large-lot users and wholesalers. The firm recently started next price hike negotiations effective for August with major users to reflect raw material cost upsurge in July-September.

Sumitomo Metals announced price hike of seamless carbon steel and alloy pipes by 20% effective for April against all domestic users and dealers to reflect higher raw material prices. The firm has continued the price negotiations with major users. Most users have recently approved the hike.

Sumitomo Metals shifted to quarterly price change system from previous yearly system since raw material prices presently change by quarter. Domestic supply of seamless steel pipe shows a tightening sign along market recovery of construction machines though the demand maintains inactive from industrial machines.