Factiva: "Tinplate producer Rasselstein will have to readjust contract terms with its customers to catch up with changes on the materials supply side, it tells Steel Business Briefing.
Like other major European tinplate producers, the German company sells its products virtually exclusively to canmakers. As one distributors puts it to SBB, “we stopped storing tinplate years ago, it has become mostly direct business; it’s a complicated product that requires close technical cooperation.”
Most of Rasselstein’s contracts have been annual, to accompany the production campaigns of packagers, often subject to seasonal effects when it comes to vegetables and fruit, CEO Ulrich Roeske tells SBB. “But this will have to change to consider the changes in the iron ore contracts,” he says. The company is currently campaigning to find new contract formulas with its customers, adds marketing chief Christian Puerschel.
The near future will bring a goodbye to long-term contracts, and a hello to increased volatility, according to Roeske. “It looks like we will no longer be able to guarantee price stability as we used to,” he says. But he is optimistic the company will succeed in passing on the price premiums it has to bear for raw materials. “There is no splendid isolation for tinplate in the steel world; not for us, and not for the processors of tinplate.”"
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