Steel plate is still one of the strongest steel products in the US market; nevertheless, market sources have commented that demand has fallen off slightly and that inventories are a little on the high side.
US demand for steel plate is by no means soft; however, in relation to the service center inventories, it may be lacking. Standard size A36 grade plate is readily available as some service centers are slightly overstocked. In general, many service centers previously bought a lot of tonnage hoping for a good summer, but they now find themselves sitting on the inventory.
On a brighter note, although inventories are slightly higher than service centers would like them to be and demand has softened some, the market is still stable. Domestic prices have stayed firm since May and are not expected to fall in the near future. In fact, the scrap market has been trending upwards with prices climbing by approximately $20 /long ton this month. This will push mills to raise their surcharges, which could in turn even increase transaction prices for A36 grade plate in the fourth quarter. Regardless, market sources are expecting a stronger first quarter for plate. With the scrap market trending upward and new jobs coming on line requiring plate, it is expected that the market will strengthen and domestic prices will increase come February.
As for now, however, prices for A36 plate are stable, still ranging from $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.
While standard plate is readily available, heat treated plate, grade A514, is hard to come by. It has been said that lead times are pushed out and mills are requiring controlled order entry. Demand for heat treated plate is extremely strong as it used to build tanks for the military and mills are overbooked. Mills have also raised prices by approximately $2.00 cwt. ($44 /mt or $40 /nt) for A514 plate and prices are now in the range of $75.00 cwt. to $80.00 cwt. ($1,653 /mt to $1,764 /mt or $1,500 /nt to $1,600 /nt).
The global plate market has remained strong, creating a relatively low number of imports coming to the US. Also, many countries are not offering standard sized plate to the US due to pending antidumping cases.
SteelOrbis has learned of some offers for fourth quarter arrivals. The most recent South Korean offers to the West Coast for pressure vessel quality A516 Grade 70 plate are in the range of $43.00 cwt. to $44.00 cwt. ($948 /mt to $970 /mt or $860 /nt to $880 /nt) FOB West Coast.
There are also South Korean offers out there for A572 Grade 50 plate ranging from $42.00 cwt. to $43.00 cwt. ($926 /mt to $948 /mt or $840 /nt to $860 /nt) FOB West Coast arriving in the fourth quarter.
Due to the antidumping case pending against South Korea for grade A36 plate, there are currently no offers in the market.
Data from the US Import Administration show that worldwide export tonnage to the US for plates cut to length for the three-month span of June, July and August totaled 336,539 mt. The top three exporters were: Canada with 99,301 mt, Thailand with 86,074 mt, and Romania with 26,941 mt. Data for Romania was gathered from June and July only, as it did not export any tonnage to the US in August. For plates in coils, worldwide export tonnage to the US for the same three-month span totaled 199,218 mt. The top three exporters to the US were: Canada with 103,548 mt, Netherlands with 33,135 mt, and Russia with 21,022 mt. Tonnage for Russia is for July only as it did not ship any tonnage to the US in June or August.