Nippon Steel to Hike Pipe Price for Home, Export

Nippon Steel decided to increase export price of steel UOE pipe and welding pipe for oil well, pipeline and other energy applications for first half of fiscal 2010 starting April. The firm apparently started the negotiation with oil major and other buyers and offered averaged US$ 250 per tonne of hike. The firm also started 20% price hike negotiation for steel pipe price for domestic buyers to cover higher raw materials cost.

The energy pipe demand is strong when pending projects for natural gas pipeline and new oil development under recovering oil and gas market price. The higher demand lifts steel makers production level for UOE pipe and welded pipe. The strong demand is expected to continue for major projects worldwide.

The firm tries to increase the domestic pipe price for all pipe items including forge welding pipe, welded pipe, seamless pipe and UOE pipe both for distributors and contract buyers effective in April. The firm seeks additional 5-10% hike for galvanizing and other coated pipe to cover higher cost for zinc along with the adjustment of the price gap with other products.

The firm tries to increase the selling price when raw materials cost could increase widely for fiscal 2010. The higher cost also increases the cost for loss materials in the process. The firm tries to keep stable supply through the price hike.