The US domestic plate market has seen little change since price increase announcements were issued, but a major boost in scrap prices could help mills finally push up spot prices. About two weeks ago, SSAB American and Nucor separately announced $1.50 cwt. ($33/mt or $30/nt) plate price increases in order to firm up a market that continues to suffer from weak demand and buyers lacking the confidence to stock inventories. ArcelorMittal, meanwhile, told customers it would be raising plate prices by $3.00 cwt. ($66/mt or $60/nt), a move that drew significant skepticism. Still, because the average plate spot price had drifted to the lower end of the $36.00-$37.00 cwt. ($794-$816/mt or $720-$740/nt) ex-Midwest mill range--with a plethora of deals $1.00 cwt. ($22/mt or $20/nt) lower attainable for larger buyers--sources told SteelOrbis that even a small scrap boost would help give mills the leverage they need to dry up the lowest deals and raise prices.
In the last week, US domestic scrap prices have jumped from an expected $10-$15/lt increase to settling at prices ranging anywhere from $30/lt to as much as $50/lt higher in some regions. With a significant increase in raw material costs, industry sources anticipate that it is inevitable that plate mills will begin to push for at least a $1.50 cwt. increase, but anything more is unlikely without an improvement on the demand side as well. However, with import offers, particularly out of Turkey, only slightly below US domestic spot prices, most buyers are not finding imports to be a worthwhile alternative to domestics.