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| CNPC Holds Tender To Take 317,000 Tons UO Pipes |
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China National Petroleum Corp (CNPC) held its international tender Jan 21 to purchase a total of 317,000 tons of UO pipes for part of requirements in 2009 in relation to China's new West-East natural gas pipeline project and other pipeline projects. The total procurement volume breaks out as 105,000 tons of X80 UO pipes and 212,000 tons of X70 UO pipes. CNPC is believed to have held back on purchases of X80 spiral pipes and HR coils for X80 spiral pipes this time because no bids were invited for those purchases. The international tender took place via an electronic commerce system. CNPC is supposed to inform bidders of tender results within 30 days from the opening of bids. Japan's integrated steelmakers, though, admit that they are at a distinct disadvantage in their offers to the tender this time. It is understood that offer prices take precedence of other terms such as product quality and technological services in a typical tender by an e-commerce system. The Japanese steelmakers maintain that quality and technological services are integral factors in their comprehensive competitiveness. In the tender, Nippon Steel Corp, JFE Steel Corp, and Sumitomo Metal Industries Ltd have made separate offers of X80 UO pipes through Mitsui & Co Ltd, Marubeni-Itochu Steel Inc, and Sumitomo Corp, respectively. Among Chinese offers of X80 UO pipes are ones from four companies including Baosteel Co Ltd and Julong Steel Pipe Co Ltd. Chances are CNPC will give priority to purchases from domestic steel mills in its UO pipe procurement by tender this time, given the Chinese government's economic stimulus measures afoot, the Japanese steelmakers believe. Accordingly, the Japanese steelmakers see an outlook that they will face tough price requirements from CNPC. The Japanese steelmakers may opt out if they have to slash prices in negotiating for firm deals with CNPC, market sources suggest. |
| last modified : Tue 27 Jan, 2009 [10:19] |
