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|Negotiations on Loam Plates for Asia to Prolonged Battle for Next Qtr Shipt|
Negotiations on loam plates (tin mill black plates) for Asia by the Japanese mills have started for shipments of the next quarter (January-March) and are in an atmosphere to become a long-running battle. The Japanese mills are requesting an increase in prices mostly by $20-30 from those for this quarter but customers' perspective is strongly in a decrease in prices, so negotiations are likely to bog down.|
Tinplate mills in Asia for which the Japanese mills supply loam plates are suffering from inflows of Chinese tinplates at cheap prices. As a countermeasure against it, tinplate mills of each country are thinking to lower prices of loam plates being material of tinplates importing from Japan.
It falls on the demand season from the next quarter. Accordingly, the Japanese mills are seeing that they do not need to reduce their prices of loam plates because demand for loam plates are supposed to increase. In fact, from customers in Thailand and so on are requesting to increase supply quantity of loam plates for shipments of the next quarter.
The Japanese mills are proceeding with negotiations on steel tinplates as well as loam plates for Asia. Although they are offering their prices to increase by $30, results till now are in a patchy appearance. There were some levelling off of prices but the majority stayed at an increase in prices by $5-10. Seen from this, they are observing that they will be able to raise their prices of loam plates even slightly as long as tinplate prices rose.
Chinese mills' offer prices of tinplates for Asia seem to be cut even slightly for the next quarter. Against the backdrop, there seems to be the fact that Baoshan Iron & Steel lowered its domestic prices of tinplates by 200 CNY ($33) for January shipment. With this as a driving force, customers are requesting a price decrease of loam plates. At the present stage, the Japanese mills can be said to be struggling with negotiations on loam plates for January shipment affected by China's tinplate prices.
However, the Japanese mills are judging that time will tell for demand for tinplates to surge. So, they are seeing that a request for a price decrease from customers will disappear in late December (for February shipment) by their bringing into a prolonged battle.
|last modified : Wed 10 Dec, 2014 [10:00]|