US domestic and import plate prices plummet

Friday, 05 October 2012 01:24:18 (GMT+3)   |  
       

Spot prices in the US domestic plate market have dropped substantially over the last couple weeks and import offers are following the downtrend. US spot prices have fallen in the range of $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) ex-Midwest mill, reflecting a decrease of as much as $3.00 cwt. ($66/mt or $60/nt) since mid-September. Spot prices vary from one mill to the other, according to sources, and while some are attempting to keep prices at the higher end of the range, others have been making deals at sub-$36.00 cwt. ex-mill levels. High inventories, largely due to continued high arrivals of imported plate, are keeping buyers from placing any large-volume orders at domestic mills. The decline in US domestic scrap prices is also taking a major toll on plate spot prices, and with scrap expected to settle down at least $40/lt in October, the plate market's price decline likely isn't over yet.

With US prices falling so swiftly, offshore sources have also been forced to lower offer prices to US customers. Korean, Turkish and Japanese prices are approximately $33.00-$35.00 cwt. ($728-$772/mt or $660-$700/nt) DDP loaded truck in US Gulf ports--with a few offers heard just below--also down about $2.00-$3.00 cwt. ($44-$66/mt or $40-$60/nt) in the past couple weeks. Unlike US spot prices, however, import offers are not likely to drop too much further. Already, interest in imports has waned the last couple months as US buyers already have plenty of imported plate on-hand to work though. Further, with US domestic spots declining precipitously in the past month, it remains extremely uncertain where prices will be by the time import orders placed today arrive.


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