US domestic plate market awaits January scrap announcement

Friday, 30 December 2011 01:48:42 (GMT+3)   |  
       

While SSAB Americas has already announced a price increase for February shipments--for $2.50 cwt. ($55/mt or $50/nt)--other US plate mills, particularly Nucor, have yet to make any official announcements. Sources tell SteelOrbis that Nucor is likely awaiting the January scrap trend, which is expected to be strongly up, before announcing any sort of increase on plate prices. While there have still been deals made below market prices in the last couple weeks, US domestic plate spot prices will likely begin to rise in January from the current range of $45.50-$46.50 cwt. ($1,003-$1,025/mt or $910-$930/nt) ex-Midwest mill--unchanged over the last few weeks--with the support of steady plate demand and higher raw material costs.

Although January is predicted to be a strong month for domestic plate mills in terms of prices and order entry rates, there is still much uncertainty about anything further out. As mentioned in previous weeks, imports have been extremely attractive in recent months and US buyers have booked significant tonnages with a number of offshore mills throughout December, whose offer prices to the US are substantially lower than US domestic spot prices. The latest import prices in the US from Ukraine, Turkey and Korea still range from $38.00-$39.00 cwt. ($838-$860/mt or $760-$780/nt) DDP loaded truck in US Gulf ports, while Russian offer prices are between $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt) DDP loaded truck in US Gulf ports, all reflecting no change since mid-December. 
 


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