Rasselstein will not cut tinplate production in 2009

Factiva: "German tinplate producer Rasselstein will not be cutting production in 2009, despite previous warnings that output reductions in this fiscal year were likely (MB July 31), a company spokesman told MB. 'Rasselstein was considering cuts to production last year caused by a shortage of pre-material, due to the strong demand for hot rolled coil worldwide,' the spokesman said. 

'Since the shortage of pre-material is no issue presently, the original plans for full production are being performed now,' he added. Rasselstein, which is a subsidiary of ThyssenKrupp, has a tinplate production capacity of 1.5 million tpy at its Andernach plant, the world's largest packaging steel facility. The company is currently enjoying strong demand for food cans and 'sees no indication that demand for packaging steel will drop in the months ahead', the spokesman said. 'Rasselstein is optimistic so far,' he added."

But a continuing concern for the tinplate maker is the dramatic increase of the cost of hot rolled coil in 2008. Although hot rolled coil on the European domestic spot market has declined from highs of €800-830 per tonne last summer to current levels of €380-450 ($481-570) per tonne, these reductions do not affect Rasselstein. The company purchases its hot rolled coil substrate from parent company ThyssenKrupp and requires specific, high quality material that is not available on the open market, according to the spokesman. Furthermore, Rasselstein is locked into long-term contracts with ThyssenKrupp that were based on the high iron ore and coking coal contracts set last year. Although the market is expecting raw materials contracts to fall this year, Rasselstein would not comment on the likely impact of this on its hot rolled coil contract prices. "There have been no final discussions on the raw materials negotiations and no indications where ore prices will develop," the spokesman commented.

Japanese steel firms to start tinplate and TMBP export talks

Steel Guru: "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."

JFE Steel (Japan) will install new annealing line

Factiva: "Japan's JFE Steel plans to install a new 480,000tpy annealing line No.6 at the Fukuyama plant. With the launch of the new unit, scheduled for the second half of 2010, the company will increased its capacity for annealed steel production to 11.48mtpy. Investment into the construction is estimated at about $1.74b. The equipment will be supplied by local company, and is designed for annealing of CR flats in thicknesses 0.15-0.6mm and widths 610-1270mm.

Fukuyama plant is currently capable of producing some 11.5mt of steel and about 10mt of finished products per annum. The plant produces slabs, HR, CR, HDG and color-coated flats, tinplate and long products, sold mainly to domestic market and partially exported, mostly to South Korea and China."

EU tinplate stockists concerned about credit lines tightening

Metal Bulletin: "Tinplate stockists in Europe are concerned about tightening credit lines at a time when contract prices with the mills have increased and left them open to huge potential losses in the event of customer payment defaults, market participants told MB. 

“Insurers and banks will look at the credit terms and shorten them in an industry that’s heavily reliant on credit. There are huge capital outlays to buy tinplate, but we have to wait for money to come in from our customers. You find yourself with a few million pounds out there and no cover,” one tinplate stockholder said. 

“This is going to put pressure on the sector. The average invoice value is going through the roof,” he added. 

Tinplate in the European domestic spot market was being quoted at around €1,315-1,380 ($1,675-1,758) per tonne for February production and at around £1,180 ($1,700) per tonne in the UK, according to Metal Bulletin Research. 

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)