Two consecutive price increases from US domestic plate mills are helping to firm up spot prices, but there is widespread skepticism as to how much of the increases will stick. A week ago, domestic plate mills issued a $2.50 cwt. ($55/mt or $50/nt) increase for orders set to ship during the week of December 30--essentially for January orders--just two weeks after announcing an increase for the same amount. But while the first increase was predicted on account of a November scrap increase, sources say last week's second announcement caught them off guard, especially as demand levels are still only mediocre at best as most are trying to liquidate inventory before the New Year. Mills are likely to collect a portion of their announced increase, but without a boost from scrap prices and demand, there is little chance that prices will rise the full $5.00 cwt. ($110/mt or $100/nt).
Even though most mills are quoting higher prices and have been significantly less willing to let buyers place orders over $1.00 cwt. ($22/mt or $20/nt) under the spot price range of $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) ex-Midwest mill--as they had been the last few weeks--it remains premature to raise the spot range just yet. But once lead times move in January, at least the lower end of the range is likely to be difficult to come by. With US domestic prices on the rise, Korean mills have raised their plate offer prices to the US by about $1.00 cwt. in the last couple weeks, with prices now around $35.00 cwt. DDP loaded truck in US Gulf ports, with some offers heard even slightly higher. However, unless the spread between import and US domestic spots widens, most US buyers are likely to shy away from offshore purchases.