Nippon Steel Gets 20,000 yen/t for Beverage Can Flat Steel

Nippon Steel agreed with Japanese major beverage can maker to increase tinplate and tin free steel selling price by 20,000 yen per tonne for April shipment. The price increases by 8-13% depending on steel products. The firm reflected higher material cost to the selling price. With the agreement by major can makers, other Japanese tinplate users would also accept the higher price. The can makers should realize higher can selling price to secure profitability.

Nippon Steel and the major beverage can maker reached the agreement earlier than expected. The can makers apparently wanted to fix steel cost to negotiate can selling price with beverage companies.

Japanese can makers including 18 liter can makers and users settle the can price one time in every fiscal year ending March. The can makers usually cannot change the selling price during the term. Nippon Steel increased tin plate and tin free steel selling price by 20,000 yen per tonne for April 2010 to set the price unchanged through the fiscal year while the firm increased other steel price by 15,000 yen for April 2010 and changed the price again in a year.

Steel material cost represents the large part of can makers’ cost structure. Can makers try early selling price increase while they could not fully pass past steel price cost increase on the selling price.

Nippon Steel sees tin plate and tin free steel demand is firm. Can makers seem to increase the output to prepare for forced electric power saving in summer under campaign to avoid uncontrolled blackout.