As further run-up is expected in US domestic plate prices, a larger number of US buyers are choosing to take stock in competitive import offers.
Both Russian and Brazilian plate offers are hovering around $37.00-$39.00 cwt. ($816-$860/mt or $740-$780/nt) duty paid FOB loaded truck in US Gulf ports-putting the least expensive import offer approximately $5.00 cwt. ($110/mt or $100/nt) below the lowest US price. "Even if US prices fall between now and the delivery date, chances are they won't fall $5.00 cwt., making the deal still a good one even four months from now," commented one Southern service center.
US domestic plate prices are still in the $42.00-$44.00 cwt. ($926-$970/mt or $840-$880/nt) range, ex-Midwest mill, although the few bookings that remained under the low end of the range over the past few weeks have now disappeared, and the vast majority of orders are being placed at $43.00 cwt. ($948/mt or $860/nt) and above. As spot prices have firmed up, so have mill asking prices, and some mills in the South and Midwest have quoted up to $49.00 cwt. ($1,080/mt or $980/nt) on specialty items, convincing more buyers to look offshore. "After being quoted three times above $44.00 cwt. by domestic mills I went out and placed an order for Brazilian plate" one Southeast distributor told SteelOrbis. "If you don't need the product until after Q1, then import offers are your best bet right now."
Buying activity has slowed this week due to the Christmas and New Year holidays; however, market insiders predict heightened activity after the first of the year, and before the next anticipated domestic plate increase is announced in January. And despite a general slowdown in the plate market in the latter half of December, distributors report that overall, the last two months of the year have proven themselves to be a "pleasant surprise" as just two months ago 2010 was expected to end on a quiet and uneventful note.