Even with end-user demand for plate in the US remaining steady, particularly from OEM and energy-related sectors, high inventories and continued heavy import arrivals are dampening spot prices. In the last couple weeks, domestic spot prices have dropped about $1.00 cwt. ($22/mt or $20/nt) to $45.00-$46.00 cwt. ($992-$1,014/mt or $900-$920/nt) ex-Midwest mill. Many US buyers are still holding high inventories from stock-ups a few months ago, from both domestic and import sources, and are therefore able to wait out the current downtrend. Data from the US Steel Import Monitoring and Analysis (SIMA) show that a combined 316,097 mt (license data) of cut-length and coiled plate arrived in April, and another 95,438 mt (license data) as of May 15 this month.
Current plate futures activity in the US is still stagnant, and while trader sources tell SteelOrbis that offer prices from Korea, Turkey, and Ukraine are still largely between $41.00-$42.00 cwt. ($904-$926/mt or $820-$840/nt) DDP loaded truck in US Gulf ports, unchanged since early May, a few offers have been heard as low as $40.00 cwt. ($882/mt or $800/nt) DDP loaded truck in US Gulf ports. While the prices remain attractive to many US buyers situated near US Gulf ports, the narrowed range between offshore and US prices has kept the majority import activity at bay. For buyers in the Midwest, import prices are too high when freight rates are factored into the equation.