Domestic plate prices have remained steady since May and it looks like the pricing trend will remain flat until at least fourth quarter.
In April, the four major domestic plate producers upped plate prices for May to keep up with the strengthening demand along with the rising cost of scrap. In the few months since then, scrap prices have slid and are now bouncing up slightly, allowing steel mills to keep their end products' prices neutral. While demand for plate is still quite strong, it may have slipped a little during the summer months, as the steel market at large traditionally undergoes some softening every summer.
Overall, the US plate market is solid, and it is stronger than most steel products. Plate is in high demand and is expected to maintain its strength for a while. The transportation market is very strong right now, consuming plate for rail car, barge, and ship building. The energy market is also strong and is expected to maintain its strength for a few years.
Insiders are even predicting a better fourth quarter for plates then the first three quarters of this year, and with that may come a slight increase in price. For now, domestic plate prices are stable, still ranging from $43.00 cwt. to $44.00 cwt. ($948 /mt to $970 /mt or $860 /nt to $880 /nt) for commercial grades A36 base sizes coiled and cut to length plate.
The global plate market is also very strong, creating a relatively low number of imports coming to the US. Other regions of the world are willing to pay higher prices for imported plate whereas in the US, with import numbers so close to domestic figures, US buyers would rather purchase domestically. Also, in the US there are still restrictions on imports, and there are antidumping cases under review.
General import offerings for A36 plate to the Gulf region are still in the range of $39.00 cwt. to $40.00 cwt. ($859 /mt to $882 /mt or $780 /nt to $800 /nt) FOB Gulf Coast. Narrow plates, primarily from Thailand, are being offered below than this range.
License data from the United States Import Administration shows for plates in coils, worldwide exports to the US in July totaled 75,171 mt, with Canada as the number one exporter with 34,290 mt, followed by Russia with 21,022 mt, and Netherlands with 10,968 mt. Worldwide exports for cut to length plates in July totaled 112,048 mt. The top three exporters to the US were Canada with 31,485 mt, Thailand with 19,879 mt, and Ukraine with 14,676 mt.