US tin mill shipments stay strong despite overall decline

Steel Business Briefing: US shipments of tin mill products increased 4.5% last year, despite an overall 8% decline in American steel shipments, compared to 2007 (see other story).

However, Steel Business Briefing notes that the tin products increase is a return to the norm in what is a pretty stable market at around 2.9m short tons/year of shipments.

Ironically, the year-over-year growth was possibly aided by the recession, when canned food purchases generally increase due to tighter household budgets.

A market source tells SBB the steady pace will likely continue, especially in the current uncertain economic times. When recessions hit, people begin using their grocery money on purchases that have a longer shelf-life, as opposed to fresh food that must be used within a short, specific time frame.

This insider expects a normal year for tin can production this year and says the market should remain stable, despite continuing unstable financial times. Production may continue to increase, but at a small rate, he said.

JFE and Rasselstein in tinplate co-operation agreement

ITRI: "Japan’s JFE Steel and Rasselstein, the tinplate making subsidiary of ThyssenKrupp Steel in Germany, announced a technical cooperation agreement for steel used for cans and other packaging. The two companies will cooperate in the development and mutual provision of materials and technologies for thinner packages on a rolling five year contract.

This is the first technical cooperation for JFE Steel with an overseas partner. Rasselstein is an only tinplate maker in Germany and one of Europe’s top three tinplate makers, along with Arcelor Mittal and Corus. Rasselstein's annual production was 1.5 million tonnes for the year to September 2008, higher than JFE Steel's annual production of 500,000 tonnes.

Thyssen Krupp executive Ulrich Middelmann recently spoke very positively about the tinplate business in a quarterly earnings conference call: “the tinplate market is actually really in favour of us. We had the chance to increase prices. We are meanwhile fully booked, so the situation is very stable.”"

Japanese steel firms to start tinplate and TMBP export talks

Steel Guru: It is reported that Japanese integrated steelmakers are expected to start negotiations this week on their export deals of tinplate and TMBP for shipments to Asian destinations in the April to June quarter of 2009. The Japanese steelmakers have yet to work out the terms of separate offers.

As to tinplate prices, China's Baosteel Co Limited executed a domestic price reduction in the equivalent of more than USD 100 a tonne each for November shipments and January shipments. As a result, moves to hold back on new purchases pervaded Asian customers for tinplate exports out of Japan. On their part, the Japanese steelmakers were forced to execute a considerable price reduction in their tinplate exports to Asian destinations for shipments in the January-March quarter of this year, with a fall in tinplate demand for cans. In the background, too, were low-priced tinplate exports to Southeast Asia by the competition such as Chinese steelmakers."

Under the existing circumstances, the current prices of Japanese tinplate exports indicate a fall of USD 200 to USD 300 per tonne FOB from what prevailed in the latter half of last year. In this connection, HR coils for TMBP are currently selling at around USD 600 per tonne FOB, while the going prices of HR coils for building materials stand at a level of USD 500 per tonne FOB, half the earlier norm.Japanese steelmakers have reduced prices in Asian deals for tinplate and TMBP exports for January to March 2009 period shipments, which they describe as a price revision that anticipates a fall in prices of raw materials imports for fiscal 2009. 

Therefore, they are contemplating giving the Southeast Asian users an explanation of why the Japanese steelmakers cannot respond to any request for a price reduction for April to June 2009 period shipments on grounds of a fall in raw materials prices.As far as China is concerned, the Japanese steelmakers are on track to offer increased prices of tinplate and TMBP exports there for April to June shipments. They find it necessary to correct the present spread of as much as USD 300 per tonne between negotiated prices for shipments to China and Southeast Asia. In East Asia, meanwhile, Thailand's Siam Tinplate Co and China's Hainan Haiwoo Tinplate Co are scheduled to commission a new tinning line each at their works in 2009, assuming that the new capacity is used in tinplate production for export. Still, it is uncertain whether both tinplate manufacturers can move into export markets for tinplate during this year.(Sourced from TEX Report Limited)

Chinese tinplate export market still quiet

Factiva: "Demand for Chinese tinplate continues to be weak, especially as offers from other countries fall below Chinese offer prices of around $1,150 per tonne fob, said traders. Few bookings have been made, except for some small business for the long-term buyers. 

'The export market is quite weak, even Baosteel has made mixed offers to different buyers,' a Shanghai trader said. 'I've heard that South Korean producers are offering below $1,100 per tonne cif for delivery in south-east Asia, which has grabbed it a bigger market share than Chinese traders,' he said. 

'South Korean products are of good quality, and their offers are quite low, partly because of the seriously depreciating won, so I have turned my export business to domestic market for a while,' said a second trader in Jiangsu province. Given the weak tinplate export market, Beijing may increase the 5% export rebate on the product, said the Shanghai trader.

'Tinplate and cold rolled coil producers are mainly state-owned steel mills, which may get support from Beijing, which is said to be reviewing the export rebates, while hot-dipped galvanizing mills are mostly privately-owned, which may get less help from the government,' he said."

Tesco calls on drinks industry to work together on packaging

packagingnews.co.uk: "Tesco's head of packaging Sonia Raja has called on the drinks industry to follow the laundry sector's example and work together in moving to concentrates where possible and making the best use of packaging.

Speaking at Wrap's DrinksPack'09 event in London yesterday (25 February), Sonia Raja told delegates that they should collaborate on developing packaging to 'maximise returns and consumer acceptance'."

Q1 2009 ThyssenKrupp AG Earnings Conference Call

Factiva: "Second question, can you talk a little bit about the tinplate market. I think we all think steel is steel, but as I understand that tinplate market is absolutely booming and your position in that should be relatively healthy for you."....

ULRICH MIDDELMANN

Coming to your second question, the tinplate market is actually really in favor of us. We had the chance to increase prices. We are meanwhile fully booked so the situation is very stable.

Campbell Net Declines as Retailers Cut Soup Inventory

Bloomberg.com:.: "Campbell Soup Co., the world’s largest soupmaker, said second-quarter profit fell 15 percent as retailers cut back inventories.

Net income dropped to $233 million, or 64 cents a share, the Camden, New Jersey-based company said today in a statement. Sales fell as the dollar gained strength against other currencies. Excluding restructuring expenses, profit was 65 cents a share, a penny more than the average of 13 analysts’ estimates compiled by Bloomberg."