September 08, 2008

Sumitomo plans to revise domestic pricing of seamless pipes

Sumitomo Metal Industries Ltd announced that it has begun negotiations to revise domestic pricing of seamless pipes for all domestic customers.

The revision will apply to all domestic customers spot sales and long term contracts of seamless pipes. The revision will apply to seamless pipes produced from July 2008 onwards. The revision will be an incremental price increase of 10%.

Sumitomo Metals had implemented a price revision a 15% increase of seamless pipes produced in and after April 2008. Since then, the surge in prices of raw materials such as iron ore and coking coal has far exceeded our initial forecasts.

Summitomo said that in the current fiscal year ending March 2009, export demand of seamless pipes is expected to remain strong in the energy related sector. Domestic demand is also likely to remain strong, particularly in the construction machinery, industrial machinery, and plant engineering sectors. Under the circumstances, we are receiving some strong requests from our customers to increase supply of seamless pipes.