The US domestic plate market has felt no relief from falling prices over the last two weeks, as many buyers continue to delay purchases in anticipation that a pricing bottom has not yet been reached. A bright spot in the US plate market is that underlying demand remains steady, and lead times are still five to six weeks at most mills. Even so, there is still some pressure from service centers' high import inventories and what is likely to be another major drop in scrap prices in June. While scrap prices won't settle until next week, a drop of anywhere from $20-$40/lt is possible. Consequently, plate spot prices, which are still between $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-Midwest mill, could slip further in the next few weeks. Already, SteelOrbis has heard initial rumors of purchasing activity under $45.00 cwt. ex-mill.
Import plate arrivals in the US slowed slightly in May, but May was still a heavy import month with 86,687 mt (license data) of cut-length plate as of May 29, compared to 90,602 mt (preliminary census data) in April and 120,610 mt (census data) in March. June arrivals are anticipated to moderate as an uncertain domestic market slowed offshore purchasing activity a few months back. Current futures offers from Turkey and Korea are still attractive at $40.00-$42.00 cwt. ($882-$926/mt or $800-$840/nt) DDP loaded truck in US Gulf ports, but interest has waned in light of the US market's continued weakening trend.