Japanese steelmakers begin TMBP exports negotiations to Asia

Steel Guru: "With a price increase of USD 30 per tonne on offer, Japanese integrated steelmakers have begun negotiations on their TMBP exports to Asian destinations for shipments in the July to September 2009 quarter. There is a strong possibility that the Japanese steelmakers will see the price increase take hold in the TMBP exports they negotiate because there are no offers in tinplate exports out of South Korea to the Middle East and elsewhere, according to market sources.

In the case of Indonesia's PT Latinusa, the tinplate manufacturer is expected to accept the TMBP price increase on offer from the Japanese steelmakers. For the main factor, Latinusa is done with its TMBP inventory adjustment before the demand season for tinplate in Indonesia. The July to August period before Ramadan represents the nation's demand season for canned foodstuff."

Meanwhile, POSCO revised its domestic sales prices of steel products from May 15th 2009, with a price reduction of KRW 150,000 to KRW 850,000 per tonne for TMBP. As to POSCO's export sales, TMBP is subject to a virtual price increase in the wake of a much more appreciation of the won against the US dollar than before. Besides, POSCO indicates the move to file an antidumping case against the Japanese steelmakers in South Korea's HR coil imports. Accordingly, the nation's various tinplate manufacturers favor stopping their export negotiations out of apprehension that they may find it difficult to secure both HR coils and TMBP from Japan. As matters now stand, the Middle East is devoid of tinplate offers from South Korea at present although South Korean tinplate producers were promoting positive exports there until recently. Accordingly, there is a probability that Southeast Asia's various tinplate producers will respond with alternative exports to the Middle East, which will permit increased prices in Japanese TMBP exports to Southeast Asia.