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| Japanese Eyes On Baosteel's Domestic Tinplate Price For Q1'09 Shipments |
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Japan's integrated steelmakers are set to watch how China's Baosteel Co Ltd will settle its domestic sales price of tinplate for shipments in the January-March quarter of 2009. There are forecasts that Baosteel will inform domestic customers Nov 20 at the earliest of its domestic prices of various steel products for shipments in the first quarter of next year. At present, most of the world's steel transaction prices are way down. With tinplate bearing closely on foodstuff, though, market conditions for tinplate differ from those for other steel products such as commodity-grade HR coils, hot-dip galvanized sheets, and shapes. As a result, Japanese integrated steelmakers keep attention to how Baosteel will work out its domestic tinplate price for January-March shipments in 2009. In China, the nationwide production capacity for tinplate and TFS (tinfree steel) has expanded into 600,000 tpy this year thanks to the new production facilities on stream of Baosteel and Zhongyue Posco (Qinhuangdao) Tinplate Co. The former's facilities have two tinning lines, and the latter's one tinning line. As a result, China's domestic supply-demand conditions for tinplate are likely to slacken from this year onward. But the outlook is seen as no serious problem because China's tinplate demand growth stands at 200,000 tons per annum. The nation's current tinplate demand is estimated at 2,300,000 tpy. Besides, the October-December quarter of this year marks the demand season for tinplate. Nevertheless, Baosteel has taken the plunge and reduced its domestic tinplate price by Yn700/ton (US$103) for November shipments. As a result, China's canmaking industry has opted to hold back on new tinplate purchases in the belief that domestic transaction prices of tinplate are bound to fall after their peak in October. Baosteel is determined to keep its tinplate price unchanged for December shipments. It is likely, though, that Baosteel will reduce what it charges for tinplate again for assured sales volume as the domestic environment remains unchanged. If Baosteel cuts its domestic tinplate price for Q1 shipments next year, chances are foreign-affiliated tinplate manufacturers in China, including Sino-Japanese tinplate joint venture, will come under pressure to execute a considerable price reduction each in local sales of their products, market observers forecast. |
| last modified : Tue 25 Nov, 2008 [10:52] |
