The fourth quarter has arrived and domestic prices for steel plate have risen slightly, by approximately $20 /nt ($22 /mt or $1.00 cwt.). Demand is decent and buyers are anticipating even more improvement in the first quarter.
Although service centers are reporting healthy plate inventories, the market is still relatively strong. A great deal of demand is still coming from the energy sector. New line pipe projects are expected to come on stream shortly, and other markets such as shipbuilding and bridge building are also showing some strength. The non-residential construction market is also still decent, despite the slight slowdown that many service centers are noticing. End-users' inventories are on the low side, which should increase buying activity in the near future.
A price increase was announced by domestic mills in recent weeks for fourth quarter shipments, though, in general, the plate market has seen very few price fluctuations over the past year. The price adjustments that have occurred have been very subtle, demonstrating the stability of the market.
Domestic standard sized A36 plate prices range from $40.00 cwt. to $41.00 cwt. ($882 /mt to $904 /mt or $800 /nt to $820 /nt) FOB mill for commercial grades A36 base sizes coiled and cut-to-length plate in the Gulf region. Prices are approximately $3.00 cwt. higher on the West Coast. Demand for A36 plate is expected to strengthen more, come first quarter. Supply is expected to be tight, and domestic prices are expected to increase in turn.
For further processed plate, such as heat-treated plate, prices are higher, and the material is harder to come by. Lead times are pushed out, and demand is strong.
There are very few plate imports arriving in the US. The global market is strong, and import prices to the US are very close to the domestic prices. Buyers, for the most part, are giving their business exclusively to domestic mills. Even large plate distributors that traditionally stock import products have switched to domestic due to the tight import market.
SteelOrbis has heard that most import offers in the US market are from Thailand, Malaysia, Russia and Ukraine.
Limited size and quantity offers from Thailand are now ranging from $36.00 cwt. to $37.00 cwt. ($794 /mt to $816 /mt or $720 /nt to $740 /nt) FOB West and Gulf Coast. Lead times for Thai material are pushed out a few months, and there are not many buyers jumping on the opportunity.
Malaysian offers are slightly higher than Thai offers, ranging from $37.00 cwt. to $38.00 cwt. ($816 /mt to $838 /mt or $740 /nt to $760 /nt) FOB Gulf and West Coast.
Russian and Ukrainian offers for standard A36 plate are also in the market, ranging from $39.00 cwt. to $40.00 cwt. ($860 /mt to $882 /mt or $780 /nt to $800 /nt) FOB Gulf Coast.
Data from the US Import Administration show that imports of cut-to-length plates in September totaled 105,415 mt. The top three import sources were: Thailand, with 33,057 mt; Canada, with 22,486 mt; and Ukraine, with 9,358 mt. For plates in coils, September imports totaled 63,004 mt. The top three exporters to the US were: Canada, with 29,179 mt; Netherlands, with 15,446 mt; and New Zealand, with 5,066 mt.
Export statistics from the US Department of Commerce conclude that world-wide exports from the US for plates cut to length totaled 76,858 mt in July 2007. The top five countries to which the US exported its material were: Canada, with 53,829 mt; Mexico, with 16,761 mt; Belgium, with 1,670 mt; Israel, with 1,087 mt; and Japan with 1,050 mt.