THE PRICE OF TINPLATE IN THE CHINESE MARKET IS EXPECTED TO CONTINUE TO FLUCTUATE.

Concern remains in the commodities market. In China in general, aluminum prices remain supported by expected production cuts and rising costs, and will increase if demand recovers. However, it is necessary to remain alert to macro risks caused by interest rate hikes abroad.

In the case of tinplate, the short-term market is expected to continue to fluctuate as the current price range remains low and volatile. Taking into account the evolution of the tinplate market and prices in China, Baosteel, WISCO and Mei-Steel increased their prices by 150 yuan/MT. At present, the price adjustment of other general line tinplate mills ranges from -100 to +150 yuan/MT;

In relation to the cost of freight and exchange rate, the rate continues to fall, and this situation may last in the coming weeks. However, the exchange rate between USD/CNY has reached 7.10 since now, while if we analyze the hot rolled material the price stabilized and gradually increased while the market price of hot rolled coil started to gradually increase between 100-150RMB/MT after stabilizing. At present, the delivery time for tinplate orders in the Chinese domestic market is still around 50 to 60 days, however, the order intake remains stable.

In the case of the tinplate market, according to the latest reports, in July 2022, China’s total tinplate exports amounted to 148,000 tons, up 52.51% year-on-year. From January to July 2022, the total export volume of tinplate amounted to 982,000 tons, with a year-on-year increase of 48.47%; translating to a total export volume of canned fruit in China of 320,000 tons, with a total value of US$422 million. Compared to the same period of the previous year, the amount increased by 46%.

The volume of canned fruit exports was 46,100 tons, with a value of US$63.77 million. Compared to the same period of the previous year, the number increased by 22% and the amount increased by 43%.