US domestic plate market pins hopes on November scrap market

Friday, 02 November 2012 00:37:50 (GMT+3)   |  
       

After months of relentless price declines, US domestic plate spot prices are beginning to stabilize as a scrap uptrend appears imminent. While it may still take a couple days for the US domestic scrap market to settle, an increase of about $20-$40/lt currently appears to be the most likely scenario. Once the scrap market officially settles next week, plate mills are anticipated to announce a price increase to try and boost buying activity and prices. But while many agree on the likelihood of an official mill increase, its impact on actually pushing plate spot prices is still uncertain. Demand levels have trailed off over the past couple months and there continues to be a glut of import plate unsold at many US ports and plenty of plate still arriving.

At least for now, plate spot prices are unchanged since mid-October in the range of $35.00-$36.00 cwt. ($772-$794/mt or $700-$720/nt) ex-Midwest mill, although mills more aggressively seeking to sell tons have offered deals at prices slightly below. With most plate spot deals taking place around $35.00 cwt. ex-mill, current import offers aren't really garnering any US buyer interest. Korea is still offering plate to the US at $33.00-$34.00 cwt. ($728-$750/mt or $660-$680/nt) DDP loaded truck in US Gulf ports, or just below, not low enough to really interest potential customers. Price isn't the only factor keeping US buyers from purchasing Korean plate at the moment, though; rumors that domestic plate producers could file a trade suit against Korean plate by year's end have been growing louder over the past couple weeks.


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