Despite the slowing demand for other steel products, demand for steel plate has been maintaining its strength, allowing US domestic plate producers to up their prices for September shipments.
Since the beginning of this year, domestic plate producers have raised plate prices every month in response to strong demand, and September is no different. In mid-August, US domestic plate producers announced a $20 /nt ($1.00 cwt. or $22 /mt) increase for September deliveries of plate products, and though this increase is significantly smaller than those in recent months, it demonstrates that the market is still going strong.
For other steel products, gloomy times may have arrived, as flat rolled and tubing mills have rescinded previous price hikes following a slowdown in demand; but for plate, demand has remained strong since certain plate-related markets, such as the energy sector, are still thriving. Wind, solar, and nuclear power are all starting to come on board as alternatives for power generation in the US, creating a need for more steel plates as new plants are rapidly being built. Other end-use markets like ship and railcar building, as well as infrastructure development, are also very strong. The strong demand, combined with the lack of imports and the small number of domestic plate producers, is limiting supply and pushing prices upward.
Including the most recent increase, domestic standard plate prices are now in the range of $74.00 cwt. to $75.00 cwt. ($1,631 /mt to $1,653 /mt or $1,480 /nt to $1,500 /nt) FOB mill for commercial grades A36 base sizes coiled and mill plate in the Gulf region. Offering prices for domestic plate are significantly higher than they were at the beginning of the year. In January, buyers could find domestic plate for approximately 43 percent less than the prices at which it is offered now.
Going forward, given the strong demand for plate products, prices are not expected to trend down; however, with scrap prices on a downward trend through the next month, domestic plate prices may start to stabilize.
As for imports, there are very little trickling in. Plate demand on a global scale has been strengthening, and prices have been increasing accordingly. Offers are not very attractive, especially considering that the current offers are for end-of-the-year deliveries. Some recent inquiries have surfaced, although they don't seem to be at a large enough percentage below domestic prices to get much traction.
Import offers of standard plate from Russia and Ukraine are available, pricing at approximately $69.00 cwt. to $70.00 cwt. ($1,521 /mt to $1,543 /mt or $1,380 /nt to $1,400 /nt) FOB loaded truck, US Gulf Coast ports.
For the narrower-width plate, Thailand has continued to offer to the US, with offerings at $67.00 cwt. to $68.00 cwt. ($1,477 /mt to $1,499 /mt or $1,340 /nt to $1,360 /nt) FOB loaded truck, US Gulf Coast ports.
Data from the US Import Administration show that during the three-month span of June, July, and August, for plates in coils, worldwide export tonnage to the US totaled 207,699 mt in 2007, and totaled slightly less at 192,062 mt in the same three months in 2008. For cut-to-length plates, a similar pattern was noted. For the same three-month span in 2007, worldwide export tonnage to the US totaled 310,118 mt, while in 2008 the tonnage was 245,759 mt.