January 2012 | Coated Steels
Tinplate agreement reached: Global tinplate market highlights
Many end-users prefer annual contracts, so can suppliers were looking to extend their up-stream contracts from 6 months to 12 months.
In December, it seemed that tin mills and purchasers would not reach agreement for Q1 2012. With the holiday break looming the fear was that prices would have to be extended a month. The negotiations revolved around two issues; prices and contract length. Mills thought prices should increase as they had been held at low levels for the last 18-24 months. On the other side of the table, the purchasers recognised that tin had depreciated, that steel was cheaper and that market stocks were sufficient, so a reduction, if anything, was needed. However, beyond prices, the other discussion was on the length of contract. Many end-users preferring, or even insisting on, annual contracts, so can suppliers were looking to extend their up-stream contracts from 6 months to 12 months. However, mills have difficulty giving such contracts as their raw materials are priced...
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