While it is too early to determine the effect of Nucor's $2.00 cwt. ($44/mt or $40/nt) plate price increase for April orders, many US domestic market players are optimistic. Demand for plate has been unwavering in recent months, but concerns that declines in US flats prices will spill into the plate market, which is already under pressure from an anticipated influx of arriving imports, has translated into rumblings that US plate spot prices, in the range of $46.50-$48.50 cwt. ($1,025-$1,069/mt or $930-$970/nt) ex-Midwest mill (unchanged in the last two weeks), may soon soften as well. Although plate mills may not be able to implement the full increase, especially with another expected sideways scrap move next month, some industry sources believe the increase will serve another purpose: to change market mentality to reflect a more positive future price outlook--which may in itself be enough for some reluctant buyers to boost purchasing activity again.
Even so, trader sources tell SteelOrbis that a decent amount of their import plate arriving this month and in April is coming in unsold. Some plate from offshore has arrived with tags under $40.00 cwt. ($882/mt or $800/nt) DDP loaded truck in US Gulf ports, and is already pressuring US distributors' resale prices. Current offers from offshore also remain well below US spot prices. Turkish mills have dropped their offer prices to the US by about $1.00 cwt. (22/mt or $20/nt) in the last couple weeks to $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt) DDP loaded truck in US Gulf ports. Meanwhile, after having the lowest plate offer prices to the US for over a month, Korean mills have increased their prices in the US by $1.00 cwt. to $41.00-$42.00 cwt. ($904-$926/mt or $820-$849/nt) DDP loaded truck in US Gulf ports.