US plate demand decent but prices still soft

Friday, 05 April 2013 01:29:56 (GMT+3)   |   San Diego
       

Despite some mills' attempt to enforce previously announced price increases, plate spot prices are under pressure.  Last month's consecutive price increases totaling $3.00 cwt. ($66/mt or $60/nt) put official mill asking prices for plate at $39.00-$40.00 cwt. ($860-$882/mt or $780-$800/nt) ex-Midwest mill. Sources tell SteelOrbis that mills are holding firm on the higher prices whenever possible, particularly for small-tonnage buyers. However, it wouldn't take a large order to attain prices well beneath those levels, especially as scrap prices for April are already settling about $20/lt lower than last month.

US domestic plate spot prices are therefore still in the range of $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) ex-Midwest mill, although service center sources report that demand and inquiry levels have picked up--as is often the case in early spring. The slight pickup in demand will not likely be enough to offset a drop in scrap prices, however, and official mill asking prices could drop by late next week. As a result, the future offer price range of $34.00-$35.00 cwt. ($750-$772/mt or $680-$700/nt) DDP loaded truck in US Gulf ports from Turkey is too high for the majority of US buyers to consider. Some traders are also selling previously imported plate positions for those interested, but availability has diminished in recent months.


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