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Reaction for negotiations on tinplates favorable for Japanese steel mills

Tex Report reported that although negotiations on steel tinplates for the remote areas like Central and South America and Middle East have just started for shipment of next quarter reaction from a customer is very favorable, and contracts have been concluded at USD 60 to USD 70 markups from the current level. Even in the lowest cases, USD 50 were increased.

 

The Japanese mills’ offers have been undertaken almost by USD 100 increase since the middle of May. As there is the price difference of USD 200 for the remote areas compared to those for Southeast Asia, the Japanese mills seem to keep pace together to offer 3-digit price increase for necessity to make a price improvement soonest possible.As for export to the remote areas, ArcelorMittal of Europe also seems to be offering 3-digit price increase mainly for Middle East for shipment of the latter half of this year and therefore, the environment gets prepared to accept large price increase by the Japanese mills. And, as offers of tinplates from the countries like China and Korea for the remote areas are few, such situation seems to contribute to penetration of price increase. It is unconfirmed information but a few offers to raise prices are reported to be made by some Chinese mills. Offers by Rasselstein are unknown.The Japanese mills have started to offer for next quarter shipment in the Southeast Asian area as well. Offered prices are raised by 3 digits same as those for the remote areas. However, it is uncertain whether such large price increase is accepted shortly same as those for the remote areas.

 

 It is because Baoshan Iron & Steel of China decreased its domestic prices by CNY 200 for June shipment. Each customer begins to doubt the upward trend of tinplates caused by Baosteel’s price decrease and seeing a possibility for Baosteel to export at cheap prices for Southeast Asia, it has put up a wait and see stance.And, the Korean mills are showing a stance of price increase at any rate by increasing its offer prices by USD 30 to USD 40 for next quarter shipment but in their price increase, there is perception gap from the Japanese mills. Offers from the Chinese mills are also found. Originally, there was information of price down but they seem to have offered unchanged prices or increase by USD 20 to USD 30 at least with no price down. Demand for next quarter will be staying at a state of plateau same as this quarter, tinplate prices are sure to rise but as resistance level of prices is felt, attention is drawn whether the Japanese mills realize price increase by more than USD 50.Meantime, negotiations on material steel loams have also started. 

 

All offers are not being presented yet but 3-digit increase in price is expected just like tinplates. It is uncertain whether the Korean mills have started negotiations for next quarter shipment but POSCO offered USD 50 increase for May and June shipment and the rerollers increased by USD 50 for the off season shipment of June and July. If those prices are the starting ones for next quarter shipment, there will be difference in degrees of interest from those of the Japanese mills just like tinplates. However, as the won is weakening, it is thought that large price increase is not necessary for them considering net prices to receive.

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