US domestic plate prices drop despite bullish mill pronouncements

Friday, 26 September 2014 00:53:37 (GMT+3)   |   San Diego
       

Although SSAB and Nucor rolled out a $1.50 cwt. ($33/mt or $30/nt) price increase on plate last month, citing robust order books and 90-plus day lead times, there were some rumblings that mills may have been exaggerating lead times in order to keep prices strong.  Today it seems those suspicions were correct; the most recent price increase attempt has not only fallen flat, but the most commonly reported spot price transaction range has slipped by $1.50 cwt. ($33/m or $30/nt) since our last report two weeks ago, falling to the approximate range of $42.50-$43.50 ($937-$959/mt  or $850-$870/nt) ex-Midwest mill. However, there is some indication that deals slightly below this range may be available based on the size and scope of the order. “Lead times haven’t moved,” according to one Midwest-based service center. “Mills were saying all along how activity was strong that their order books were quite padded.  It’s kind of interesting that today, lead times are still out to November, which is exactly where they were a month ago.”

As for the import plate market, offer prices have not moved in the past two weeks. Brazilian mills continue to offer in the approximate range of $38.00-$39.00 cwt. ($838-$869/mt or $760-$780/nt) DDP loaded truck US Gulf coast ports, while Turkish producers, who are generally offering in that same range, are said to be open to negotiating with those who want to book significant tonnages. Offers from Mexican plate mills are also still available in the approximate range of $37.00-$38.00 cwt. ($815-$838/mt or $740-$760/nt) DDP loaded truck delivered to US border states, but sources tell SteelOrbis deals for as much as $2.00-$3.00 cwt. ($44-$66/mt or $40-$60/nt) on the largest orders are available.


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