Buying activity in the US domestic plate market has been limited over the last few weeks as spot prices continue to drift lower. Even though Nucor's $2.25 cwt. ($45/nt or $50/mt) drop in the RMS for plate last week doesn't have any immediate impact on current spots, it has further dampened an already gloomy outlook in the US plate market. After a major drop mid-month, domestic spot have fallen another $0.50 cwt. ($11/mt or $10/nt) over the past couple weeks into the range of $40.50-$41.50 cwt. ($893-$915/mt or $910-$830/nt) ex-Midwest mill. For the most part, however, the lowest prices are only available for large volume buyers. Smaller distributors, on the other hand, have been sticking to smaller purchases in lower tonnages from larger service centers for just-in-time delivery as even the current two to three week lead times at most domestic plate mills are too long for some.
With prices falling so heavily throughout June and July, speculation of a possible increase to at least set a floor under US plate spot market prices is growing. Although if domestic scrap prices do firm next month as many are predicting and it triggers an increase from mills, too large of an increase could once again substantially widen the spread between US domestic spot prices and import offer prices-a scenario that industry sources said mills want to avoid so as not to propel another flood of import arrivals in Q4. Currently, many US buyers that commonly purchase import plate aren't too interested in booking futures, although Korean and Japanese plate prices remain aggressive in the range of $36.00-$38.00 cwt. ($794-$838/mt or $720-$760/nt) DDP loaded truck in US Gulf ports.