Japan-based steelmaker Sumitomo Metal Industries, Ltd. (Sumitomo Metals) announced on March 17 that it will revise its domestic seamless pipe prices for spot sales as well as long-term contracts. The steelmaker said that the revision will be an incremental price increase of 20 percent and will be implemented from April 2010 onwards.
According to the company's statement, steel demand has been and is expected to keep increasing in China and in other East Asian markets. Under this environment, the rising trend of raw material prices has been intensified. A surge in prices of major materials such as iron ore and coking coal appears to be inevitable, while auxiliary materials such as ferroalloys are also rising.
Sumitomo said that demand for seamless pipes hit bottom in the first half of the fiscal year 2009-10. Export demand for seamless pipes in the energy-related sector is on a recovery track, while domestic demand is also gradually increasing with a recovery seen in the construction machinery and industrial machinery sectors as regards manufacture of export products. Under the circumstances, this pricing revision will enable Sumitomo to ensure stable supply of seamless pipes.