For most of August, US domestic plate spot market prices had been trending in the range of $26.50-$28.00 cwt. ($584-$617/mt or $530-$560/nt), ex-mill, and sources close to SteelOrbis said that mills were taking a “gloves off” approach when it came to securing orders. Ultimately, mills seemed to be cutting whatever deals needed to be cut, as a means of filling their order books.
Yet in late August, when it started to become clear that scrap prices were “all but certain to rise” during the September buy-cycle, most steelmakers took advantage of that news and began to raise prices.
Nucor, AMUSA and SSAB all announced they were raising US domestic plate prices; however, Nucor was the lone mill that established a price floor. According to a letter distributed to customers, Nucor set their minimum spot market price at $28.00 cwt. ($617/mt or $560/nt) ex-mill.
Since that time, prices have in fact moved upward and the bulk of transactions are taking place at $28.00 cwt. ($617/mt or $560/nt), ex-mill. This price point is slightly higher than levels heard last week, when the most commonly heard spot market price transaction range was trending at $27-$28 cwt. ($595-$617/mt or $540-$560/nt) ex-mill.