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|Negotiations on Tinplates Go into Full Swing for Next Qtr Shipments|
|= The Japanese mills are to raise prices with an indomitable resolve =|
The Japanese mills' negotiations on steel tinplates seem to have gone into full swing for shipments of the next quarter (January-March). Their offer prices vary depending on areas but they have given top priority to a recovery in margins also for the next quarter. However, they have not disclosed concrete figures yet. As a feeling, they seem to have offered nearly triple-digit increases in prices.|
It is said that for shipments of this quarter, they raised their prices of tinplates by $40 or so for Asia and $70-80 for remote regions such as Latin America. As a difference in degrees of an increase in prices arose depending on regions, they are seen to have been unable to raise their prices across the board.
One of the reasons why prices for the remote regions were higher than those for Asia is likely to be because European mills were inactive for the remote regions due to strong demand in Europe despite of the off-season. Lately, negotiations on yearly contracts within the region have started for shipments in 2018. Offer prices are reported to have been raised by 80-100 EUR. In dollar equivalent, prices have been raised as much as $90-116. In the region, as soared prices of raw materials could not be reflected to tinplates for 2017 shipments, European mills are in a stance to raise their prices largely this time. Simultaneously, the combination of European businesses between Tata Steel and thyssenkrupp is reported to have advanced, and attention is paid to movements of tinplates makers such as Rasselstein of a subsidiary of thyssenkrupp.
European mills are in a certain situation to raise their prices largely not only in the region but also in their influential regions including Latin America and the Middle East. As it is turning to the demand season in the Asian region, it will be a good opportunity for the Japanese mills to raise their prices coupled with price increases of European mills. In Japan, as domestic demand for flat products is strong, exports are in an environment to be limited. So, there are no mills to focus on quantity. They are in a strong stance to gain an increase in prices even sacrificing quantity. There is a possibility that it will decide the direction of a price trend how strong tinplates mills of other countries hammer out an increase in prices.
Meantime, offer prices of Japanese and Korean re-rolling mills of tinplates are too cheap. Their prices are said to be cheaper by $50-100 than those of blast furnace mills. In case of Japan, processing prices are seen to be appropriate. However, importers' prices of material hot-rolled (HR) steel coils seem to be so cheap. A delay in markups of HR coils is thought to have caused cheap export prices of tinplates.
|last modified : Wed 22 Nov, 2017 [11:41]|