Japanese Tin Plate Product Demand to Recover Slightly in F2010

Japanese domestic demand for tin plate products is expected to increase slightly in fiscal 2010 started in April compared with fiscal 2009. The demand volume is likely to keep the level as much as in the second half of fiscal 2009. The demand volume is about 90% level compared with the peak from fiscal 2007 to the first half of fiscal 2008. Supply and demand balance of tin plate products would keep tight for a while due to the active export, according to Japanese maker source.

The demand would keep the level of fiscal 2009’s second half for beverage cans and industrial containers. The shipment of 18-litter can and pail can is expected to increase slightly if the demand recovers for architectural paint and lubricant oil. The demand would keep the current level for general cans.

Domestic demand for tin plate products keeps the shrinking trend in fiscal 2010. Some beverage makers are currently adopting aluminium cans and PET bottles instead of conventional steel cans for coffees. As to general cans, the users are increasing the adoption of paper packages.

It is unforeseeable whether steel can demand decreases after tin plate makers’ price hike. Some concerned sources said confectionery makers may use paper packages instead of steel cans when they release new products due to tin plate’s price up.

As to the price, several steel can makers said they hope to conclude tin plate price on yearly contracts because can makers cannot revise the selling price frequently.