US domestic plate price increase inspires little optimism

Friday, 22 February 2013 01:45:56 (GMT+3)   |   San Diego
       

Since US domestic plate mills' price increases this week, activity and prices have exhibited little change. On Monday, SSAB Americas announced a $1.50 cwt. ($33/mt or $30/nt) price increase for the ship week of March 17 and beyond. By Tuesday, Nucor had followed with a comparable increase, but effective immediately. But rather than a response to increased demand and/or order entry rates, sources say the move was aimed at preventing spot prices from sliding. So far this year, mills have struggled to keep plate prices stable and service center buyers have resisted higher mill prices due in part to being unable to raise their own resale prices in turn.

Spots are now on the low end of the previously reported $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) ex-Midwest mill range, with some deals heard as much as $1.00 cwt. ($22/mt or $20/nt) under the low end. Should scrap prices recover modestly next month following the dip in February--as some early speculators predict--it could give mills the leverage they need to firm up spot prices. For the time being, mills are competing with one another for orders as imports are essentially a non-starter, with offers out of Turkey only about $1.50-$2.00 cwt. ($33-$44/mt or $30-$40/nt) lower than US domestic spots, and of little interest.


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