The raw material of the tin can be tinned sheet (tinplate), SMM on the domestic mainstream tinplate production enterprise 2017 years of production survey, as at the end of 2017, tinplate production of 4.19 million tons, the end of 2016 fell 8.3%, the average operating rate of 61.5%. According to the tinplate industry statistics, domestic tinplate production capacity was estimated at 7.05 million tons in 2018, an increase of 3.5% yoy in 2017.
The whole tinplate industry showed a small increase in production capacity, the characteristics of a small decline in sales, the extent of the surplus has not improved. In recent years, domestic tinplate production capacity still has a high vacancy rate, the main reason for overcapacity: first, the industry itself oversupply, including some of the impact of alternative products, resulting in the tinplate industry to face the situation of re-shuffle. Although there has been a problem of excess, but production capacity, production has remained relatively stable state.
Second, the external environment makes tinplate enterprises forced to reduce production, such as its main raw materials hot-rolled steel prices rose sharply, and tinplate product prices because of poor demand and difficult to keep up with the increase in raw materials, many of the strength of the enterprises choose to reduce production to avoid risk. Exports, 2017 total exports of 1.41 million tons, accounting for One-third of sales, in recent years also maintained a relatively stable state, China's production technology and equipment in the world still occupy advanced status. Industry people generally expect the 2018 tinplate industry will maintain a stable and weak pattern, the corresponding tin consumption will not change significantly. As a result, the industry will continue to maintain a stable and healthy development in 2018.