US domestic plate mills are attempting to maintain stability in the market, raising the raw material surcharge (RMS) but keeping base prices unchanged for July.
Nucor led the mill price announcements on June 17, indicating no change to base prices, but announced an RMS increase of $15/nt effective with shipments for the week ending July 9. Other domestic plate mills have since followed suit with RMS surcharges of their own, but have also kept base prices level for the second consecutive month. While the neutral base price and increased RMS moves will help to keep domestic plate spot prices mostly stable in July, and even possibly August, spot prices have been under pressure from other sources, particularly imports.
The usually tight US spot market for carbon plate seems to have loosened slightly in the last couple weeks. Likely under the pressure of the sudden increase in availability, US domestic plate spot prices have softened $1.00 cwt. ($22/mt or $20/nt) since mid-June and are now in the range of $53.00-$54.00 cwt. ($1,168-$1,190/mt or $1,060-$1,080/nt) ex-Midwest mill.
The excess availability may be due--at least in part--to less expensive imports having already arrived into US Gulf ports. Sources tell SteelOrbis that there is now some imported plate available as a result of positions bought by US traders from Russia for about $50.00-$52.00 cwt. ($1,102-$1,146/mt or $1,000-$1,040/nt)DDP loaded truck in US Gulf ports--about $3.00 cwt. ($66/mt or $60/nt) under current US domestic plate spot prices-- near US Gulf ports. While the amount of "cheaper" plate isn't significant, it is enough to put pressure on US domestic spot prices.
Although domestic plate prices may oscillate downward modestly through the summer months, any change isn't likely to be dramatic going forward. With relative stability expected in the US plate market, imports are still viable options for many US buyers. However, most import offers have quieted with the exception of offers from Russia. Russian mills are still offering plate to the in the range of $46.00-$47.00 cwt. ($1,014-$1,036/mt or $920-$940/nt) DDP loaded truck in US Gulf ports, reflecting no change from two weeks ago.