US domestic plate spot prices have remained steady since mid-May, but distributors are facing downward pressure on resale prices.
Domestic plate mills haven't let spot prices fall below the range of $54.00-$55.00 cwt. ($1,190-$1,213/mt or $1,080-$1,100/nt) ex-Midwest mill, touting order books that are in late June/early July and even early August for integrated mills. But the spot market has been unstable in the last couple weeks for plate as some buyers began delaying purchases domestically while waiting for incoming imports.
Nucor's decision last week to keep prices level for July was the first time since Q4 2010 that domestic mills didn't open order books with a price increase, and while some see the move as a sign of stability, others are concerned it is a sign that spot prices have peaked and may begin to decline in the not-so-distant future. Either way, plate spot prices are stable for the time being. But while mill spot prices are steady, service centers are facing resistance translating mill prices to their customers, forcing many to sell off average costs, rather than replacement costs, resulting in skinnier margins at the service center level.
Accordingly, US buyers have become more reluctant to book anything offshore. Many booked Russian plate heavily in March and April, however, and imports of plate for June and July are expected to rise above April and May levels. Current Russian offer prices are still the most competitive at $45.50-$46.50 cwt. ($1,003-$1,025/mt or $910-$930/nt) DDP loaded truck in US Gulf ports for late August/early September delivery-unchanged from our last report two weeks ago.
As for arriving imports , US Steel Import Monitoring and Analysis (SIMA) data indicate that 66,708 mt (preliminary census data) of cut-to-length plate arrived in the US in April-up 4.4 percent from March imports of 63,761 mt. May imports of cut-to-length plate have shown a decline however, and stand at 57,881 mt (license data) as of May 27.