2021 tin box price trends

Tip: As early as the New Year's Day holiday, the international metal tin box market has begun to rise, and many tin box manufacturers in China, Japan, India, France, and the United States have announced price increases. After the New Year's Day holiday, the range of price increases continued to spread.

  As early as the New Year's Day holiday, the international metal tin box market had begun to rise, and many tin box manufacturers in China, Japan, India, France, and the United States announced price increases. After the New Year's Day holiday, the range of price increases continued to expand to the world; the announcement of price increases by various tin box manufacturers directly opened the momentum of tin box price growth in 2021.

Steel mills continue to rise

The increase in tin box prices is inseparable from the increase in the price of tin-plated iron raw materials. According to media reports, since December 2020, international tin-plated iron prices have been rising steadily, whether it is frosted iron, silver-plated iron, or galvanized iron. Relying on their position in the industry, steel mills not only increase their prices frequently, but also increase their prices relatively large.

   Judging from the recent international market situation in the past ten days, the price of tin-plated iron will increase by 500-1000 US dollars/ton on December 15, 2020. This is the first round of price adjustment of tin-plated iron that month, and it is also in 2020. The last round of price adjustments. But then, the tin-plated iron rose again by 600-1200 yuan/ton on January 4, 2021, which also started the upward trend of tin boxes in 2021.

  Such a high frequency and magnitude of price increases have been rare in the same period since 2016. The reason this year is different is that changes in iron ore prices + energy + labor and other cost increases + increased demand have provided tin box manufacturers with a basis for price increases on the supply and demand sides.

   Tin-plated iron is an important raw material for tin box production, and the purchase cost of tin-plated iron accounts for more than 70% of the total manufacturing cost of tin box manufacturers. Even with excellent can-making equipment, a higher degree of automation, advanced production technology, and refined factory management, the cost of purchasing tin-plated iron is still the biggest cost for tin box manufacturers. Therefore, as the price of tin-plated iron rises, manufacturers of good tin will increase prices to reduce cost pressure and reduce their own business risks.

The first round of tin box price increases in 2021

   Tin box manufacturers are more flexible and respond quickly to the market. Once the price of tin-plated iron rises, it can transmit cost pressure downstream in a relatively quick time. Judging from the information reported by the media, this round of tin-plated iron price increases in early 2021 involved a very wide range, with tin box manufacturers generally increasing between 10% and 15%.

  Perhaps due to the impact of the pandemic, in addition to announcing price increases in price increase letters, tin box manufacturers often also require payment collection, such as "Customers who exceed the futures payment, the company's ERP system will automatically lock the order", "Customers who pay back on time or orders occupy inventory will not be produced", "The company of prepaid customers will prioritize production".

  In the price adjustment letter of a number of tin box manufacturers reported by the media, it was seen that "the price of tin-plated iron" has become one of the main reasons for the price increase. According to the manager of Shenzhen Shangzhimei Iron Box Packaging Co., Ltd.: "Due to the recent continuous increase in raw materials and accessories, in order to maintain normal production and operation, the company has decided to make all iron boxes at their original prices starting from January 1, 2021. A unified increase of 10% on the basis"

In addition, in many price adjustment emails, it was also noticed that many tin box manufacturers specifically mentioned in the price adjustment emails: Canceling oral orders, the order goes with the payment, and no advance payment is accepted.

  According to the China Industry Information Network, the prices of various metal box raw materials covering tin-plated iron, galvanized iron, silver light iron, etc. have all increased in price. The raw materials are mainly iron ore, which is a regional resource, and nearly 50% of iron ore depends on imports. , Resulting in iron ore supply stability and price volatility are subject to the international market.

"The price has indeed risen, and the ex-factory price of tin boxes has been increased by about 10%-15%." In the last quarter of each year, due to the approaching festivals, business suspensions and holidays, and the increased demand for new year goods, the price of tin box packaging will increase. , But the range is not large. "Generally, the price will be increased once in one or two months, probably between 7% and 15%." However, in December 2020, the price has risen twice in a row, "mainly tin-plated iron The price of raw materials has increased, leading to higher costs, and tin box manufacturers can only increase their profits in order to make profits.

In addition, due to the impact of the global epidemic, the demand for packaging for daily necessities in the international market is gradually increasing. However, due to the inability of tin box manufacturers in some countries to operate normally, orders have surged and the market is in short supply. Price increased.