Unlike other flat product markets, the plate market has maintained its strength so far during the typically slow summer season, and market sources have no reason to believe any softening is ahead.
The domestic hot rolled and cold rolled markets have been on a downward spiral for some time now due to the slow automotive industry and weak housing market. However, the steel plate market is experiencing a season of strong demand and stable prices. Although considered a flat product, plate is used in end markets such as armored vehicle manufacturing, bridge fabrication, shipbuilding, and the energy market, which are all very strong right now, unlike the automotive and housing sector. These end-use markets are driving demand and contributing to the ongoing strength of the plate market. Market sources expect stability in the months to come as the end-use markets, especially the energy sector, are expected to remain robust for quite a few years.
With scrap prices staying more or less stable these past two months and demand remaining strong, plate producers followed the trend and kept domestic prices stable for July. The four major US plate producers - Nucor Corp., Arcelor Mittal Steel USA, IPSCO, and Claymont Steel, have held prices steady at a range of $43.00 cwt. to $44.00 cwt. ($948 /mt to $970 /mt or $860 /nt to $880 /nt) for commercial grades A36 base sizes coiled and cut to length plate. Market sources expect these prices to remain stable for the next few months.
As is the case for standard plate, availability for high-alloy carbon specialty steel plate is also pretty tight. Specialty plates are very hard to find in the spot market, and most buyers will have to go directly to producers in order to fulfill their requirements. The number of producers is very limited worldwide, thus causing a tight supply.
On the import side, arrivals are far out into the fourth quarter, and availability is tight. SteelOrbis has heard a number of different offers for various sizes.
The general offering price for A36 plates from Asian markets to the Gulf has remained the same since our last report a month ago, still ranging from $39.00 cwt. to $40.00 cwt. ($859 /mt to $882 /mt or $780 /nt to $800 /nt) FOB Gulf Coast. For A572 Grade 50 plates, prices are at least $2.00 cwt. ($44 /mt or $40 /nt) more than A36 plates FOB Gulf Coast and West Coast.
For narrow plates (48" to 84") SteelOrbis has heard of offers from Thailand in the range of $38.00 cwt. to $39.00 cwt. ($838 /mt to $860 /mt or $760 /nt to $780 /nt) FOB Gulf Coast and West Coast. For the narrow plates, prices have gone up by approximately $2.00 cwt. in the past month following the increases in slab prices; however, there are still a few lower priced offers from traders for previously purchased plates. The import pricing trend for all plate sizes is slightly up as market sources expect some increases in the coming months. As one buyer put it, "It is more challenging to procure plates than to sell them right now".
In June, for plates in coils, worldwide export tonnage to the US totaled 71,832 mt, down from May's tonnage of 97,372 mt. The three major exporters to the US in June were: Canada at 39,025 mt, Netherlands at 11,225 mt, and Malaysia at 4,502 mt. For plates cut to length, worldwide exports to the US in June totaled 83,303 mt, down from the 116,414 mt in May. The top three exporters to the US in June were: Canada at 35,373 mt, Thailand at 13,700 mt, and Sweden at 4,739 mt. (License data provided by the United States Import Administration.)