China Japanese tinplate operations on track to recovery

Steel Guru: "Tex Report reported that China's Japanese affiliated tinplate manufacturers Guangzhou Pacific Tinplate Co and Fujian Sino-Japan Metal Corp are on track to a recovery of their operations from April onward. Patin is affiliated with Nippon Steel Corp and SJ Metal with JFE Steel Corp.

At present, both Patin and SJ Metal are operating at 60% of capacity for monthly production of around 6,000 tonnes. But their production is forecast to recover each to a monthly level of 10,000 tonnes in April with operations at 70% to 80% of capacity. As a result, they have requested increased supplies of TMBP from their parent companies Nippon Steel and JFE Steel after a long interval."

In China, tinplate demand for milk powder cans once took a nosedive in relation to problems with melamine mixed milk powders distributed at home. At the time, tinplate demand for beverage cans was falling as well. Of late, though, tinplate demand for milk powder cans has begun to arise again, while tinplate demand for beverage cans has trended upward toward summertime. Milk powder cans and beverage cans belong to the field of high-grade cans that are made of tinplate. Accordingly, Patin and SJ Metal see a favorable environment for their operations that could enter a full production system in the July to September quarter as tinplate demand is expected to increase from May onward too.

Baosteel Co Ltd executed a cumulative price increase of as large as CNY 3,000 per tonne in its domestic sales of tinplate for shipments in December last year and January this year.