Two weeks ago, SteelOrbis reported that the most commonly reported spot price transaction range for
US domestic
plate prices had ticked down approximately $0.50 cwt. ($11/mt or $10/nt) to $42-$43 cwt. ($926-$948 /mt or $840-$860/nt), ex-Midwest mill, with deals up to $0.50 cwt. ($11/mt or $10/nt) below that range available to those who were looking to place larger orders. Today, more and more transactions are taking place toward the lower end of the spot price range, with sources close to SteelOrbis citing a slight uptick in deal making at sub-$42.00 cwt. ($926/mt or $840/nt) ex-mill levels.
There are a number of factors playing into the slow downward creep of
flats market products. First, the relative strength of the
US dollar compared to the rest of the world, and the mass availability of cheaper-priced imports. For example, Turkish offer prices have ticked down about $1.00 cwt. since our last report two weeks ago, to $37.00-$38.00 cwt. ($816-$838/mt or $740-$760/nt) DDP loaded truck
US Gulf coast ports.
Second, iron ore and
US scrap prices have been declining steadily, which has
US mills enjoying higher profit margins despite slight wobbles in the spot market. Although no one expects the
US flats market to experience a marked crash, it is believed that additional corrections will take place in the upcoming weeks, if not months.