US steel mills to start talks for tinplate contract renewals
11/09/2009 12:00
TEX reported that major steel companies in the USA are expected to start negotiations shortly on annual contract renewals of their tinplate supplies to domestic manufacturers of steel cans for shipments in 2010.
At present, transaction prices of domestic tinplate in the USA represent the world's highest level. As a result, chances are steel can manufacturers in the USA will seek a price reduction in what they negotiate for 2010 supply contracts of tinplate with major steelmakers. As a result, it is matter of attention what price level will be settled in the tinplate contract negotiations on shipments next year.
Tinplate supply negotiations on October to December 2009 shipments are already under way both in Latin America and Asia. In this connection, there is a possibility that steel can manufacturers in the USA will approach the federal government for the revocation of the existing antidumping duties on tinplate imports from Japan, thereby permitting inflows of the imports, if domestic tinplate prices in the USA continue to stand at a higher level than tinplate transaction prices in Asia.
Tinplate exports out of Japan to the USA faced the final determination by the US International Trade Commission in 2000 that tinplate imports into the USA from Japan had injured domestic steel mills. Then, the US government imposed AD duties on imports of Japanese tinplate. The AD duties came under the first sunset review in 2006, but the US government decided to maintain the AD duties. 2010 marks the time for a second sunset review of the AD duties, and the US government is scheduled to decide in July 2011 on whether to continue or revoke the AD duties. If domestic tinplate prices in the USA continue to stand at a fairly high level, it is likely that local steel can manufacturers will solicit the US government for the revocation of the AD duties on Japanese tinplate imports through a second sunset review.
In the USA, most of the tinplate transactions are conducted under annual contracts. In the case of 2009 shipments, supply negotiations were held amid the world's soaring prices of steelmaking raw materials and steel products on the whole. At the time, domestic tinplate prices in the USA were reported as a level of USD 1,400 per tonne or USD 1,500 per tonne before a tumble of steel prices.
At present, Japanese tinplate exports to the USA are limited to products of specified quality. The Japanese export volume of tinplate for the USA totaled 2,041 tonnes in calendar 2008.
At present, transaction prices of domestic tinplate in the USA represent the world's highest level. As a result, chances are steel can manufacturers in the USA will seek a price reduction in what they negotiate for 2010 supply contracts of tinplate with major steelmakers. As a result, it is matter of attention what price level will be settled in the tinplate contract negotiations on shipments next year.
Tinplate supply negotiations on October to December 2009 shipments are already under way both in Latin America and Asia. In this connection, there is a possibility that steel can manufacturers in the USA will approach the federal government for the revocation of the existing antidumping duties on tinplate imports from Japan, thereby permitting inflows of the imports, if domestic tinplate prices in the USA continue to stand at a higher level than tinplate transaction prices in Asia.
Tinplate exports out of Japan to the USA faced the final determination by the US International Trade Commission in 2000 that tinplate imports into the USA from Japan had injured domestic steel mills. Then, the US government imposed AD duties on imports of Japanese tinplate. The AD duties came under the first sunset review in 2006, but the US government decided to maintain the AD duties. 2010 marks the time for a second sunset review of the AD duties, and the US government is scheduled to decide in July 2011 on whether to continue or revoke the AD duties. If domestic tinplate prices in the USA continue to stand at a fairly high level, it is likely that local steel can manufacturers will solicit the US government for the revocation of the AD duties on Japanese tinplate imports through a second sunset review.
In the USA, most of the tinplate transactions are conducted under annual contracts. In the case of 2009 shipments, supply negotiations were held amid the world's soaring prices of steelmaking raw materials and steel products on the whole. At the time, domestic tinplate prices in the USA were reported as a level of USD 1,400 per tonne or USD 1,500 per tonne before a tumble of steel prices.
At present, Japanese tinplate exports to the USA are limited to products of specified quality. The Japanese export volume of tinplate for the USA totaled 2,041 tonnes in calendar 2008.
from TEX Report Limited
Monday, 07 Sep 2009
Source: steelguru.com
Monday, 07 Sep 2009
Source: steelguru.com
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