Japan Steel announces price increases of seamless stainless steel pipes for Apr'24 contracts

Japan Steel is set to raise the selling prices of seamless stainless steel pipes utilised in petrochemical plants and semiconductor equipment. The planned increase is 10% across the board, with the potential for a maximum 30% hike for medium-diameter products, reflecting their high demand and limited availability. These adjustments will take effect starting April contracts.

The decision to raise prices is driven by a significant uptick in material and labour costs, compounded by escalating logistics expenses attributed to the "2024 problem". To ensure a steady supply, absorbing cost increases necessitates adjusting prices accordingly.

All products, including those sold in stores and through distributors, are targeted for the price adjustments. Applications to consumers began in February, marking the first price increase in over a year.

Japan Steel will continue to monitor supply-demand dynamics and cost trends, including raw materials and logistics expenses, to consider potential further price adjustments.

While medium-diameter products, typically with an outer diameter of 8 inches (216.3 mm) or more, witness heightened demand due to supply shortages, this particular price increase does not apply to them. However, consideration is given to the increased production levels of high-alloy OCTG pipes, manufactured on the same line. Demand for these pipes is on the rise, particularly for applications in natural gas development and underground carbon dioxide storage (CCS).

Note: This article has been published in accordance with an article exchange agreement between Japan Metal Daily and BigMint.