Nippon Steel Seeks Tinplate, Tin Free Steel Hike for October

Nippon Steel started the price negotiation with Japanese can makers Toyo Seikan Kaisha and Nihonseikan Corporation on Thursday to increase the selling price of tinplate and tin free steel for October shipment. Nippon Steel seeks more than 9,000 yen per tonne of hike for tinplate while the firm adds new extra charge for special processed products including products with batch annealing and bright finished surface. The firm tries to improve the profitability through the hike for the first time since April 2005.

The firm covers the higher cost for ferrous scrap, freight and tin ingot through the hike. Tin ingot market price increased to US$ 16,000 per tonne at London Metal Exchange compared with US$ 11,000 at the beginning of the year. The firm decided the firm cannot cover the higher cost only by own effort.

Domestic demand of tinplate tends to decrease when beverage can and general can shift to other materials. However, tinplate demand is firm in Southeast Asia and the firm enjoys firm export demand. The relative cheaper domestic market price reduced the import level from monthly 5,000 tonnes to 1,000 tonnes level. Nippon Steel tries to keep stable supply through the hike.

Domestic can makers face price hike request for metal printing charge, freight and fittings along with tinplate. The can makers could increase the beverage and general can selling price to improve the profitability.