Spot ranges have narrowed this week as mills begin to fully collect on January-announced increases.
As expected, once February began, lower spot prices in the $46.00-$48.00 cwt. ($1,014-$1,058/mt or $920-$960/nt) ex-Midwest mill range dissipated, thus firming spot prices. The most commonly reported spot prices are now approximately $49.00-$51.00 cwt. ($1,080-$1,124/mt or $980-$1,020/nt) ex-Midwest mill with the lower end only available for large tonnage buyers, a $2.00 cwt. ($44/mt or $40/nt) increase on the low end over previously reported levels of $47.00-$50.00 cwt. (1,036-$1,102/mt or $940-$1,000/nt) ex-Midwest mill two weeks ago, when a few orders were still being placed under $47.00 cwt.
However, after SSAB Americas raised plate prices $5.00 cwt. ($110/mt or $100/nt) Monday, asking prices from the mill are about $56.00 cwt. ($1,235/mt or $1,120/nt). Asking prices from other plate mills are still approximately $51.00 cwt. and a number of distributors report having booked at that level. For the most part, however, most transactions are being placed at around $50.00 cwt. ($1,102/mt or $1,000/nt) ex-Midwest mill.
Order activity has softened somewhat since our last report two weeks ago, as many buyers in January were hedging against the $50.00 cwt. plus plate prices expected in February. But because buyers are now forced to pay higher prices for plate, and slab prices will continue to increase throughout the month, other mills may very well follow SSAB Americas' lead and issue a price increase of their own in the not-so-distant future.
Even though plate buyers are confident in the US domestic plate market for the time being, they are not overly so, knowing full-well that the market could begin to see a price correction in the spring. And so, few orders are being placed at offshore mills. Cut-to-length plate prices from Brazilian and Russian producers are now approximately $43.00-$45.00 cwt. ($948-$992/mt or $860-$900/nt) duty-paid FOB loaded truck in US Gulf ports, but delivery dates are now in May and June (at the earliest)-too far out for US buyers to place any large tonnage orders.