Offshore Tinplate Users Request Monthly Price to Japan Integrated Steels

Japanese integrated steel makers are in price negotiations of tinplate export shipment for April-June with offshore users. The export price is likely to increase by US$ 200-250 per tonne compared with the previous quarter. The current export price is around US$ 1,300 per tonne for relatively high grade tinplate shipped to Thailand during January-March.

Meanwhile, steel makers are asked to adopt monthly gradual price hike for April-June, not once in a quarter. Offshore demand is strong but it is unclear how much the current export price was affected by temporary factors for raw material cost such as flood in Australia. At the same time, overseas competitors including Baoshan Iron & Steel of China and POSCO of South Korea are offering monthly export price. It seems to be difficult that Japanese integrated steels determine 3-month export price.

Japanese integrated steel maker’s source points out price hike would be insufficient by US$ 250 since tin price has recently surged. However, Baoshan Iron & Steel announced the firm raises tinplate selling price by around US$ 75 for domestic shipment in April. The firm seems to launch additional hike in and after May while Japanese integrated steels infer Chinese government’s inflation control policy might affect the price. Price talks between Japanese integrated steel makers and offshore users are influenced by Baoshan Iron % Steel’s monthly price announcement.

Demand is strong for tinplate mainly in Asia. On the other hand, offshore tinplate users are cautiously watching non-Japanese steel makers’ offers and raw material cost trend. Japanese integrated steel maker person said offshore users’ willing price is often lower than the Japanese makers’ breakeven point since third quarter of 2010.