US plate market stagnant following second round of price increases

Friday, 06 September 2013 00:55:12 (GMT+3)   |   San Diego
       

The second round of price increases from a couple US domestic plate mills has done little to firm up spot prices or boost activity. In mid-August, SSAB Americas and Nucor Plate Group announced immediate $1.25 cwt. ($28/mt or $25/nt) price increases, likely to firm up the previous price hike. However, ArcelorMittal USA did not follow the second increase, a sign that the market is likely not strong enough to absorb higher prices. Service centers are keeping inventories in line, but see no need to stock up so long as the spot price direction is uncertain. Midwest mills are generally quoting about $36.50-$37.00 cwt. ($805-$816/mt or $$730-$740/nt) ex-mill on new orders, but are negotiating down from those levels.

The general spot price range is unchanged since last week at $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) ex-Midwest mill, with smaller orders taking place on the high end of the range while buyers with more negotiating power report lower numbers. Some US customers have even started to hold off buying entirely as previously imported Turkish plate will hit US ports this fall. The imported plate from Turkey will arrive with tags at about $32.50 cwt. ($716/mt or $650/nt) DDP loaded truck in US Gulf ports, and could dampen US domestic spot prices if the arrivals are significant. Current import activity, on the other hand, is quiet, with few attractive offers reported. Taiwanese mills are offering narrower plate to the US at about $34.00 cwt. ($750/mt or $680/nt) DDP loaded truck in US Gulf ports, but there are few takers.


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