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Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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August 2019 | Galvanized Steel and Tinplate Market Tracker


Stronger Chinese market prompts price demands by other Asian exporters: Global tinplate market highlights


Baowu’s tactic of cutting its own supply to squeeze the market did not work 12 months ago, but low supply capacity among the stand-alone re-rollers may keep supply tight, and there are prospects for strong demand.

Baowu tries to set the scene for high final quarter prices
Last year Baowu (the merged Baoshan-Wuhan group) tried to manage tinplate supply down and tinplate prices up by timing the closure and refurbishing of its tinplate capacity during the second half of the year, to coincide with China’s peak demand season. The upstream coil market thwarted its efforts, however. Just as the third quarter ended, HR and CR coil prices in the domestic market fell, enabling non-integrated rivals to mitigate short supply and undercut its prices.

It seems that the group is undeterred; it is seeking to set the scene for fourth quarter price rises again this year. In the middle of the year there were reports of unchanged prices but the group has been determined to reduce the generous discounts granted earlier to hold on to customers. Now, for the first time for months, Baowu is...

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