Japan Integrated Steels Announce Tin Plate Hike by $100/t for Jan-Mar

Japanese integrated steel makers announce price hike of black plate and tin plate by more than $ 100 per tonne for January-March 2010 shipment against Asian importers. Price negotiation will start next week while integrated steels already offered the hike to some users. Local demand for tin plate is higher than the first half of fiscal 2008 (April-September 2008) in Asia. Japanese integrated steels would raise the export price for 2 quarters in a row. They target FOB $ 900 per tonne for black plate and FOB $ 1,200 per tonne for tin plate.

Demand for food and beverage cans represents steady growth in emerging countries of Asia and Latin America. Japanese integrated steel’s order receipts are firm. There have been few black plate inventories at Asian tin plate makers since this summer due to the demand expansion. Japanese integrated steels cannot meet strong demand despite of full productions.

Japanese integrated steels’ export price lowered in the fist half of 2009 along global economy deterioration. The price rebounded by more than $ 100 per tonne for October-December shipment thanks to the sharp demand recovery in and after July. However, compared with 2007, integrated steels’ productive costs surged by total $ 300 per tonne while the export price upped only by $ 150 per tonne.

Hot coil market price is currently around $ 500 per tonne in Asia. Asian tin plate importers may disapprove the price hike but Japanese integrated steels aim to improve profitability by the hike.