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|China's Tinplate Market In Patchy Appearance|
China's domestic tinplate market bears a patchy appearance despite a major price reduction of tinplate by Baosteel Co Ltd, according to information made available in Tokyo.|
Under ordinary circumstances, when Baosteel reduces its domestic sales price of tinplate in China, it brings follow-up price reductions across the nation. This time, though, there are signs that the domestic tinplate market has yet to border on a nosedive even though Baosteel's price reduction of Yn450/ton (US$66) is a solid fact.
With a patchy appearance of China's domestic tinplate market, local prices of high-grade tinplate are thought to have fallen. In contrast, local prices of so-called imitation tinplate are said to have advanced in the wake of Baosteel's price increases of HR coils and CR coils by Yn400-500/ton (US$59-74).
Japan's integrated steelmakers are reacting to the current state of China's domestic tinplate market. Among other things, the Japanese steelmakers are struggling to eliminate the influence of Baosteel's price reduction on their tinplate exports to Southeast Asia.
With a price increase of US$30/ton offer, the Japanese steelmakers have tinplate export deals under negotiation for July-September shipments to Southeast Asia. So far, there is no case of user acceptance of the price increase. But amounts inquired by various customers are on the increase. At the same time, more customers want to conclude long-term supply contracts for tinplate imports from Japan. At present, a quarterly supply contract represents the norm of what the Japanese steelmakers negotiate for tinplate exports to Southeast Asia.
The Japanese steelmakers are contemplating devoting all their energies to winning increased prices in their tinplate exports to Southeast Asia for Q3 shipments while rejecting any request for a price reduction. In this connection, they are taking encouragement from rising transaction prices in Asia of main sheet products such as HR coils and CR sheets.
|last modified : Thu 02 Jul, 2009 [10:36]|