December 2023 Metal Cans News
In our September and October Reports we coached metal can buyers to move on annual contracts for tinplate / tinplate food can prices for contracts for 2024. We had warned our subscribers about the impact of annual agreement negotiations which drive metals positions for the contract year. This causes a crowded market and significantly higher prices around year-end. This tends to occur every year. And it has happened again in 2023. Spot tinplate has moved higher by about 10% as steel coil prices have shot higher on demand driven by 2024 annual agreements. The Hot Rolled Band futures market is backwardated by about 19% in the first half of 2024.
There are other factors impacting tinplate at present. Strikes in the U.S. automotive industry have ended increasing near term demand for overall steel coil requirements. Tinplate utilizes a specialized grade of steel coil, but the near term demand in other market segments is driving short term shortages. The U.S. Commerce Department has slapped preliminary anti-dumping duties on tinplate imports from Germany, Canada and China. This will tighten the U.S. tinplate market but will cause greater supply in Europe.
Aluminum Can Stock
Can stock was fractionally higher in North America but declined by more than 1/2% in Europe because of exchange rates for the Euro.
Aluminum Can Stock in Asia was higher by more than 1%.
Here is a sampling of information that other sources don't provide
Actual prices for annual contracts and spot tinplate rather than indices
Import Prices for major exporting nations
Projections for all major input costs updated quarterly
Tinplate value chain costs for Europe and North America
Extensive tracking of steel coil prices and accurate projections 12 months out
Import volumes by country
Import prices from each country
Example tinplate can cost breakdowns
Detailed cost improvement recommendations
Pricing for all geographies
Tinplate supply & demand
Metal can market data
Here is a sampling of the content we provide
Metal can market data
Primary aluminum supply and demand history and projections
Accurate primary and scrap aluminum projections
Accurate Forecasts for can stock prices
Metal Can Cost Models
Pack Trax metal can cost models are cost effective
software that is designed for packaging procurement
professionals. The metal can software is simple to use and allows you to select a variety of can types for both tinplate and aluminum cans.
Each cost driver can be optimized using recommendations from our extensive User Guide.
This places packaging procurement professionals in a position to lead supplier cost improvement with can suppliers.