Skepticism grows over sustainability of rising US domestic plate prices

Friday, 27 January 2012 01:34:58 (GMT+3)   |  
       

US domestic plate spot prices have continued to firm as mills try to push through price increases announced in late December/early January for $2.50 cwt. ($55/mt or $50/nt). In the last two weeks, plate spot prices have firmed to approximately $46.50-$48.50 cwt. ($1,025-$1,069/mt or $930-$970/nt) ex-Midwest mill, from $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) ex-Midwest mill in late December. However, because order books for March delivery are not particularly strong, mills may find it difficult to keep the upward momentum going. With buying activity slower than anticipated, and expectations that scrap prices may go sideways to slightly down next month, earlier rumors of a third round of plate price increases in February have quieted. Another reason mills may try to roll over prices next month instead is due to a glut of substantially lower-priced imports which are set to arrive in US ports over the next couple months.

As for current plate offers, the suspension agreement with Russia has made any potential Russian plate offer prices to the US too uncompetitive, so Russian mills are no longer actively pushing offers--which would be approximately $45.00 cwt. ($992/mt or $900/nt) DDP loaded truck in US Gulf ports. An anti-dumping duty has also made Korean plate no longer an option, but Turkish plate in the range of $38.00-$39.00 cwt. ($838-$860/mt or $760-$780/nt) DDP loaded truck in US Gulf ports, unchanged from last week, is still available.


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