Nippon Steel and Sumitomo Metal Corps main production mills for seamless stainless steel pipes – Amagasaki factory and Oita Works/Hikari Area – are now operating at full capacity. In addition to orders from clients such as stockists and reroll piping manufactures, NSSMC received orders exceeding production capacity for FY2018 by end of the third quarter of 2017. Due to selective order acceptance and production increases, various costs such as personnel and distribution expenses have risen. To maintain stable supply NSSMC has already increased prices by about 10%.
Although demand recovery is on the way, the demand for CRA pipes for oil and gas has increased due to resumption of oil and gas field development.
