JFE Steel Hikes 13% Cr Seamless Pipe by US$ 300/t

JFE Steel settled the price negotiation with US oil companies and distributors to increase the 13% chrome seamless steel pipe price by US$ 300 per tonne for October-November shipment from July-September. The firm decided to seek additional US$ 300 hike for shipment in and after December, which represents total US$ 1,200 hike since April 2008. The firm increased the price by US$ 200 per tonne for April-June compared with October 2007-March 2008 shipment and US$ 400 for July-September from April-June to cover higher cost for iron ore, coal and raw materials. US supply of 13% chrome seamless pipe was oversupply between end of 2006 and first half of 2007. The inventory adjustment completed in earlier the year after the makers’ output reduction. The buyers started to increase the new order for the makers. US seamless pipe makers realized wide hike since July when the supply gets tight in USA. JFE Steel tries to keep the price gap between 13% chrome products and carbon steel seamless pipe in USA by offering higher price when the firm starts the negotiation in October for December shipment.