EUROFER tinplate producers show confidence
EUROFER tinplate producers are confident that tinplate will remain the material of choice for packaging applications despite rising raw material costs
This year, all rigid packaging will be affected by the significant increase in raw material and energy costs. Not only steel producers are faced with higher production costs because of the price rise for steelmaking materials such as iron ore, coking coal, scrap and alloying metals such as tin and zinc; fairly similar trends can be observed for other commodities such as aluminium and plastics. With the increase in crude oil prices, polyethylene producers now have the highest feedstock costs in the plastics producing world. Ultimately, these extra costs will have to be passed on to the consumer.
The tinplate producers within EUROFER, the European Confederation of Iron and Steel Industries, are confident that they can achieve price increases for annual contracts that will fully cover the extra costs for materials.
This was not possible for the current contracts, says Rasselstein CEO Ulrich Roeske, explaining that over-capacities for tinplate on the European market weakened the producers’ negotiating position. However, the recent rise in costs for raw materials – hot rolled strip as well as tin – has hit all producers equally, so that a comprehensive price adjustment appears unavoidable, Roeske says.
Represented by EUROFER, the European steel industry is the world leader in its sector with a turnover of EUR 140 billion and direct employment of 370 thousand people, producing 200 million tons of steel per year.
Contact
Gordon Moffat, Director General +32 2 738 79 26 (g.moffat@eurofer.be)
Axel Eggert, Director Public Affairs +32 2 738 79 34 (a.eggert@eurofer.be)