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| Surging External Inquiries For Japanese Supplies Of Tubular Products |
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Japan's integrated steelmakers find themselves in surging foreign inquiries for imports of various tubular products from the nation such as UO pipes, ERW pipes, structural pipes, and OCTG.. The Japanese steelmakers are reacting with moves to place store by price terms so that they can win increased prices in what they negotiate. In export demand for Japanese tubular products, negotiations on UO pipe deals first perked up from the latter half of last year when the world's energy development projects resumed one after another in sectors such as natural gas. Then, construction demand for storage tanks arose, which brought active negotiations on structural pipe deals from yearend 2009. In the field of OCTG, Saudi Arabian Oil Co (Saudi Aramco), indicates intent to negotiate for new imports this year in contrast with its few purchases last year. Saudi Aramco is the national oil company of Saudi Arabia. Besides, OCTG demand is recovering in Kuwait and elsewhere. As to ERW pipes, the Japanese steelmakers expect larger deals to emerge for their exports as new overseas requirements shape up. Until recently, export deals for small lots predominated except large-scale shipments to Australia. Of late, inquiries via brokers have stood out for UO pipe imports from Japan, with most of the inquiries from distant areas. In this connection, there are even cases in which energy developers have no option but to take UO pipes from steel distributors' store sales because of pressing needs. With a surge of foreign inquiries for the gamut of tubular products, the Japanese steelmakers are poised to put prices before sales volumes in the export deals they negotiate anew. They see a favorable factor in export sales of ERW pipes. Some bids in the existing inquiries stand at around US$700/ton FOB, compared with the yearend 2009 level of US$500/ton FOB. Also, the Japanese steelmakers are contemplating seeking major price increases in their new exports of various tubular products while watching the prospects of raw materials prices. In the USA, meanwhile, it is likely that local OCTG stocks will come down to five months of consumption for an appropriate level in the summer of this year, leading to a recovery of OCTG demand, according to market sources. The OCTG stocks recently decreased by 900,000 tons to a total of 3,000,000 tons for nine months of consumption. |
| last modified : Fri 22 Jan, 2010 [09:57] |
