US domestic plate mills are using a strong scrap market in July as an opportunity to reignite a lackluster market. About a week or so ago, domestic plate spots fell about $1.00 cwt. ($22/mt or $20/nt) from late-June pricing to $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) ex-Midwest mill. Although the bulk of activity has been taking place on the high end of the range, throughout June, an increasing number of deals were heard at around $34.00 cwt. for larger orders. Many large service center buyers have slowed purchases in recent weeks, according to SteelOrbis sources, as plate demand has moderated while supply has held steady.
But as anticipated, a $15-$25/lt increase in shredded scrap prices in July, and a $30-$40/lt increase in busheling scrap prices, has prompted mills to try and firm up sagging spots. On Thursday, Nucor and SSAB Americas announced an immediate $1.50 cwt. ($33/mt or $30/nt) increase in plate prices, and other mills are likely to try for a price increase as well. Summertime demand may not be particularly robust, but the strong scrap market and minimal import competition could be enough to breathe new life into plate prices. The latest import offers from Turkey at about $3.00 cwt. ($66/mt or $60/nt) below US domestic spots (DDP loaded truck in US Gulf ports), are likely no longer available, according to buyers, and US customers are generally sticking to domestic material at the moment anyhow.