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Q4 Japanese Export Deals Shaping Up For Tinplate, TMBP
Japanese integrated steelmakers see deals shaping up in their negotiations on tinplate and TMBP exports to Asian destinations for shipments in the October-December quarter of 2006. The negotiations are expected to take the rest of September to finish completely. So far, though, the Japanese steelmakers are getting their offers to go through favorably except ones to China.

On offer from the Japanese steelmakers are price increases of around US$50/ton both for tinplate and TMBP. At the present stage, tinplate price increases of US$30-40/ton find acceptance among customers except users in China. As a result, the new prices of tinplate amount to a level of US$950/ton FOB.

TMBP price increases, too, are going favorably at levels on a par with tinplate price increases in place. As a result, the new prices of TMBP are up to a level of US$710-750/ton FOB.

But it is considered difficult for the Japanese steelmakers to execute a price increase for China that compares with one for Southeast Asia in their TMBP export deals. In China, local steelmakers have raised domestic sales prices of TMBP by the equivalent of around US$20/ton for shipments in the July-September quarter. By comparison, the Japanese steelmakers have TMBP exports to China under contract at higher prices than domestic prices there for Q3 shipments. As a result, a TMBP price increase of US$30/ton for China is viewed as a tough provision to settle for the Japanese steelmakers at a time of intensified competition in China.

For their part, the Japanese steelmakers intend to bring back the price structures of tinplate, TMBP, and TMBP-grade HR coils to their original forms in their export negotiations for Q4 shipments. Among other things, the Japanese steelmakers are set to maintain an adequate price spread between tinplate and TMBP, form a stable price range for both products, and build their price structures independent of other sheet products.

Besides, the Japanese steelmakers are on track to resume a system of semiannual supply contracts in TMBP exports to Southeast Asia from 2007, replacing the existing quarterly deals. The resumption is based on the judgment that no new price increase is necessary in the Japanese steelmakers' tinplate exports to Asian destinations.
last modified : Fri 22 Sep, 2006 [10:58]
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