Plate demand in the Middle East, Asian and Turkish plate markets is currently weaker compared to other flat products. Demand for plate has been negatively affected by the global crisis in mostly plate-consuming sectors such as machinery, shipbuilding and construction. Since plates are used mostly in project work, demand for plate has decreased in line with the number of new projects.
It is observed that Ukrainian plate producers' HRC sales are currently in a better position as compared to their plate sales. While the Ukrainian plate producers' offers have been at certain price levels, the price differences among the Ukrainian producers are now at reasonable levels. For common grades, Ukrainian producers' plate offers are currently at $430-450/mt FOB Black Sea. Deals are being concluded from time to time at price levels with extras included. While the Ukrainian producers Donetsk had previously mentioned the price level of $400/mt FOB for June production as we mentioned before, they have softened their plate offers to $380/mt FOB. However, the producer is reluctant to decrease its prices thanks to its sales to the Far East.
Shipbuilding plate demand in the Middle East, Asia and Turkey has been affected negatively by the reduction in ship orders. Unsurprisingly, the main reason for this decrease has been the global crisis. Ukrainian producers' base prices for shipbuilding plates are at $450-470/mt FOB; however, it is heard that there have been offers at lower levels.
Meanwhile, Indian plate producers are seeking to increase their prices. While their prices had previously been at $540/mt FOB, no export offers have been heard in the last week. There have been plate deals from India and South Korea to the UAE recently at the price levels of $460-500/mt CFR; however, the Indian and South Korean plate producers would like to increase their prices to this country. Nevertheless, it is not obvious whether the UAE will accept the higher price levels, especially as the weather is getting hotter and demand is slow. On the other hand, Ukrainian origin plate offers to the UAE have in the past week been at $460-470/mt CFR.
Bulgarian producer Stomana SA's plate price level to the local market is at €370/mt CPT., whereas the producer's latest export offers have been at $490/mt FOB. It should be noted that these offers may increase due to fluctuations in the euro-US dollar exchange rate. The producer's new price levels will gain greater clarity in June. Meanwhile, Ukrainian origin plates are being offered to Bulgaria at €300/mt CFR, whereas it is heard that the Russian origin offers are at higher levels.
In general, plate purchase activity in the Middle East, Asia and Turkey is being done only in order to replenish decreasing stocks. Demand for thick plate can only recover if the projects in the regions in question gain momentum.