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Negotiations on Tinplates for Asia/Prices Adjusted Slightly for This Qtr Shipt
Negotiations on steel tinplates for Asia have passed over the peak for shipment of this quarter. There are the cases of levelling off of prices while the cases for prices to have been slightly adjusted (a decrease in price) by around $5 were found.

Against the backdrop of slight adjustment in price, there are the facts that Baoshan Iron & Steel of China reduced its domestic prices of tinplates by 100 CNY ($16) for July shipment and export of tinplates from China to the Southeast Asian regions increased.

Responding to a price fall of Chinese tinplates, customers in the Southeast Asian region had requested a decrease in price against the Japanese mills. Consequently, the Japanese mills withdrew an increase in price and adjusted their prices but they seem to have curbed the lowest prices at less than $10.

In China, since the beginning of this year, tinplates plants of Shougang Group, Shagang Group and WinSteel being a joint venture between Wuhan Iron & Steel and Nippon Steel & Sumitomo Metal have commenced operations. The tinplate production capacity of Shougang Group and WinSteel is 400 thousand tons a year each, and that of Shagang Group is 300 thousand tons a year. Accordingly, the tinplate plants with the annual capacity of 1.1 million tons are to start production. Amid an environment being said to be excess of production, the production capacity has been further increased.

The structure of demand for cans has been largely changing in China. Beverage cans have been rapidly changed from tinplates to aluminium. As a result, tinplates mills of China begin to focus on export. Such changes in China are to have the impact substantially on negotiations on tinplates for this quarter.

While, negotiations on loam plates (tin mill black plates) for this quarter shipment have not been settled yet. It is because negotiations on loam plates for Thailand have still bogged down for shipment of the previous quarter and have not been settled yet. As it falls on the off demand season in the quarter of October through December, tinplate prices tend to fall. If prices of loam plates fall, it could drag down further tinplate prices.
last modified : Tue 22 Jul, 2014 [10:24]
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