Even with a largely stable demand environment, the high availability of low-priced import plate is continuing to dampen US domestic plate spot prices.
The spread between lower cost import plate prices in the US and US domestic spot prices is narrowing, but not in the direction that domestic producers would prefer. US spot prices have been easing lower over the last couple months, and have fallen about $0.50 cwt. ($11/mt or $10/nt) in the last two weeks to the range of $47.50-$49.50 cwt. ($1,047-$1,091/mt or $950-$990/nt) ex-Midwest mill. Although domestic end-use demand is holding steady for the most part, lower-priced imported plate is still arriving into the US at high levels, pressuring US domestic spot prices lower.
Sources tell SteelOrbis that many buyers are finding little use for domestic plate right now when those holding import plate inventory are selling it off at least $1.00-$2.00 cwt. ($22-$44/mt or $20-$40/nt) below domestic spot prices. "Prices at larger service centers make a lot more sense to us than prices from the mill," explained one local Midwest distributor. As a result, mills have been cutting deals on higher plate grades or thicknesses to capitalize on the niche markets that imports from major players such as Russia don't cater to. Even so, with October expected to be another heavy month for arriving plate imports, another downtick in US domestic spot prices may be inevitable.
Offers for future import deliveries are not getting as much attention, however, despite offer prices that are still well under US domestic spot prices. Russian plate offers to the US are still $43.00-$45.00 cwt. ($948-$992/mt or $860-$900/nt) DDP loaded truck in US Gulf ports, reflecting no change from late September. Brazilian prices in the US, on the other hand, have fallen $0.50 cwt. in the last two weeks and are now between $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) DDP loaded truck in US Gulf ports.