Japan-based metals production company Sumitomo Metals Industries, Ltd. (Sumitomo Metals) has announced a 10 percent increase in its domestic prices for seamless pipes for all customers, in both long-term contracts and spot market sales, for production from July 2008 onward.
Previously, Sumitomo Metals had applied a 15 percent upward price revision of seamless pipes. However, since raw material costs have increased more than the company expected, Sumitomo Metals has declared that it has no alternative but to revise its prices again.
In addition, Sumitomo expects that export demand for seamless pipe will be strong in the energy sectors. On the other hand, domestic demand will also stay strong, especially in the construction machinery, industrial machinery and plant engineering sectors. In this context, Sumitomo Metals has decided to increase its supply of seamless pipes.
Sumitomo Metals will implement an additional 10-15 percent price increase for gas tubes and other welded steel pipes which are produced from July 2008.