Japan's NSSMC to raise stainless seamless pipe prices by 10% from Oct

Japan's largest integrated mill, Nippon Steel & Sumitomo Metal Corporation will raise its seamless stainless pipe contract prices for both domestic and export by 10% from October, an NSSMC spokeswoman said Monday.

It last raised prices by 10% for April contracts. Demand for seamless stainless pipes has been strong for power generation, oil and gas projects and semiconductors, the spokeswoman said. The company supplies about 30% of its output each to power generation and oil and gas related sectors.

Demand currently exceeds the company's output capacity, despite its plants in Amagasaki and Hikari in western Japan operating at full rates, she added.

"We have been trying to lift our output by changing shifts, but it is not enough to accept all orders," she said, adding input costs such as labor and distribution were also increasing.

The company does not release stainless seamless pipe production volume or capacities, but said it sold 470,000 mt of seamless pipes, including carbon and stainless, over April-September 2017 and was slated to sell 510,000 mt over April-September 2018.