Source: Steel Guru
TEX reported that Japanese integrated steelmakers have firmed up most of their export deals of TMBP and tinplate with successful price increases slightly beyond USD 100 per ton each for shipments to Asian destinations in the January to March quarter of 2010. As a result, the new prices agreed are estimated at levels of USD 900 per ton FOB for TMBP and USD 1,150 per ton FOB for tinplate.
In Asia, there are fairly strong demands for TMBP and tinplate. In fact, the Japanese steelmakers enjoy all time highs in their negotiated exports of tin mill products to Asian destinations for October and December shipments this year. By comparison, local demands usually fall by 10% or so from a quarter ago in the January and March quarter of each year due to the lunar New Year holidays.
But the Japanese steelmakers'’export volumes under contract so far for January and March shipments in 2010 compare with what they have negotiated for shipments in the quarter before. As a result, it follows that Asian destinations have more demands for Japanese exports than a usual year. Tinplate demand indicates marked growth of demand for beverage cans, particularly in China. As to other nations, there are signs of an expanding tinplate demand for sanitary cans such as tuna cans.
China's Baosteel Company has opted to keep its domestic tinplate prices unchanged for shipments in the January and March quarter of 2010 contrary to earlier speculation that the company would price up tinplate in strong domestic demand. Also, Baosteel has served notice on a domestic price increase of CR sheets by CNY 550 per ton for January shipments. In this connection, the company’s decision to keep tinplate prices unchanged is thought to have stemmed from the policy for an enlarged share of domestic sales whereby Meishan Steel Company will bring its tinplate production on the right track. Meishan, a Baosteel subsidiary, operates its tinning line capable of producing 200,000 ton per year of tinplate at its works.
Meanwhile, it is understood that Baosteel's CR sheet price increase for January shipments is intended to put pressure on small and midsize tinplate manufacturers whose operations are based on bought in materials, thereby forcing them to pull out. Accordingly, there is a possibility that Baosteel will increase its tinplate prices for February or March shipments if its pricing measures prove successful.
The Japanese steelmakers admit a certain influence from Baosteel’s flat tinplate prices on the price increases the Japanese steelmakers want to achieve in their deals of tinplate exports to Southeast Asia. If a major difference has arisen between Japanese and Chinese tinplate prices, Chinese export offensives of tinplate for Southeast Asia will follow, market sources forecast. On their part, the Japanese steelmakers claim to have exercised moderation in their requirements of a price increase as to Southeast Asian deals of tinplate exports for January and March shipments in 2010.