Plate spot prices in the US weaken further but bottom appears close

Friday, 19 October 2012 01:36:08 (GMT+3)   |  
       

Since last week, US domestic plate spot prices have ticked down another notch and import prices have followed the trend. Following a hefty spot price drop in early October, the domestic plate market has continued to soften. Demand levels remain tepid while buyer inventories are still high, resulting in minimal purchasing activity. Mill lead times continue to remain short in the two to four week range, allowing buyers to continuing delaying purchases. Spot prices can now be found in the range of $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) ex-Midwest mill, down $1.00 cwt. ($22/mt or 20/nt) in the last couple weeks. While most transactions are contained to this general range, some mills have offered aggressive deals to larger buyers at prices that are slightly below. However, with the scrap trend for November seemingly positive--while it is too early to tell, early predictions are pointing to sideways to up move--plate spot prices may finally be nearing an inflection point. Sources tell SteelOrbis that while the plate and sheet market price moves are not directly connected, price increases for hot rolled coil (HRC) and other sheet products may prove to be a positive for the plate market as well.

If imports continue to hit US ports so heavily, though, it may very well keep pushing US domestic spot prices down lower. Turkish, Japanese and Korean plate offer prices to the US have softened slightly in the last couple weeks to $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) DDP loaded truck in US Gulf ports, but some offers out of Korea have been heard even lower. The low Korean prices as of late have translated into rumors of a possible trade case against Korean plate imports. Imports of Korean plate hit 19,696 mt in September according to US Steel Import Monitoring and Analysis license data, surpassing Canada to become the US largest import source of cut-length plate last month.


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