Nippon steel, Japan's largest steelmakers expects that oil drilling industry with the demand of the seamless steel pipe is expected to decline 30%, but energy consumption reduction can offset the impact of falling demand.
Nippon steel is one of the world's major seamless steel pipe manufacturers, its main competitions are France steel pipe manufacturer tile Lu Ruike and Turner in Italy.
Nippon steel relevant personage says, the company plans to compress costs 50 billion yen this year, and will do their best to improve the overseas business profit at the same time, want to keep in the growth of the past three years.
Relevant agency predicted, this year's profits of Nippon steel will be increased by 6% up to 485 billion yen level, the contribution of the steel pipe business may be more than 20%.
Global crude oil prices achieve its lowest level in March this year for six years.
However, although energy prices fall results in a decrease of steel demand, it also lead to a lower production cost, such as the sea freight, as well as road transportation cost of the product is substantially reduced, Nippon steel hope the reduction of the cost is able to make up for the decline in profits from sales.
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