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Seize the Time: Tinplate Raw Materials Skyrocketed "8" Head 2023 - 03 - 21

After the China Spring Festival, all walks of life in an orderly manner to resume work and production, China domestic steel prices welcome the opening of the door, as the "flower of steel" tinplate is not willing to show weakness, tinplate producers have raised prices, prices close to the "8" head, downstream irrigation enterprises call for the cost is too high. Caution in taking orders at high levels. In the domestic tinplate price record high and "carbon peak" "carbon neutral" environmental protection policy led to the recent C material supply shortage support stimulation, tinplate industry and how to interpret?

Factory Price Accumulated up 900 yuan, Spot Market High Transaction Blocked

After the China Spring Festival holiday, some iron and steel company have resumed work and production, under the steel market boom, the order price continued to rise, in the Baowu Group released in April forward price increase of 200 RMB (30 USD), most private enterprises have increased the factory price. As of press time, the base price of BA material in northern private iron and steel company was around 7800 RMB/ton (1034 USD/ton), an accumulative increase of about 900 RMB compared to the pre-holiday period, while the steel enterprises with high base prices before the holiday accumulated 500-600 RMB (72-87 USD). In terms of spot, as of press time, Shanghai tinplate mainstream state-owned enterprises spot 0.2mm reported 8380 RMB / ton (1218 USD), an accumulative increase of 930 RMB / ton (930 USD), Tianjin tinplate mainstream private enterprises 7600-7800 RMB / ton (1104-1134 USD / ton), spot prices accumulated 550 RMB (80 USD / ton) higher than before the holiday.


Figure 1: Private plant tinplate base price increase     Data source: Mysteel research

Tinplate Production in February Fell 18%, March Production May Show a Decline year-on-year

As of Mysteel research earlier this month to monitor the 26 tinplate coil production enterprise data show that in February 2021 a total of 355,000 tons of production, 18% month-on-month decline, capacity utilization rate of 62%, 14% month-over-month decrease, the start rate of 87.8%, down 5.2% month-over-month. Before the Spring Festival, the author's research on domestic sample enterprises found that in addition to the normal production of state-owned enterprises during the Spring Festival, most private, joint ventures during the Spring Festival have stopped inspection, the total supply is bound to decline, but the decline in tinplate production in February exceeded expectations. First of all, after the scheduled closing holiday business start-up time are mostly extended, the longest extended to the end of February to start production; secondly, after the festival raw material costs rose sharply, resulting in the delay in the procurement of raw materials brought about by the delay in the start-up; finally, February days less is also affecting part of the tinplate supply. (Data source: Mysteel research)

Comprehensive view, the recent tinplate prices are likely to break the "8" head, the overall tinplate in April is still showing a high level of operation. Environmental restrictions, Tangshan multi-enterprise blast furnace strict inspection into the overhaul, strong steel prices bullish expectations under the steel price retracement has greater difficulty; short-term substrate supply reduction, tinplate supply reduction, strong support for tinplate prices; downstream canning industry high prices to take orders sentiment is still available, but the end-user orders to maintain better, the industry chain supply and demand, costs, profits, etc. in the commodity value conduction will enter a new round of adjustment.

Taking into account the market price of raw materials and ensure products quality and to keep long-term cooperation and mutual benefit, we, Guangzhou MEGA aerosol can (, can't run the business as normally based on the original price, the unit price need to increase by about 3%-5% from March to the beginning of April month. Thank you for all customers trust and supporting.

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