Declining US domestic scrap prices during this month’s buy cycle have led to widespread price erosion in the steel spot market—and plate has not been immune to the trend. Current plate market prices are down by $1.00 cwt. ($22/mt or $20/nt) in the past seven days, from $44.50-$45.50 cwt. ($981-$1,003/mt or $890-$910/nt), ex-mill, to $43.50-$44.50 cwt. ($959-$981/mt or $870-$890/nt), ex-mill.
Current prices are down significantly from their early December 2018 peak of $50.00 cwt. ($1,102/mt or $1,000/nt). Sources close to SteelOrbis say that short lead times, which in some cases are as short as three weeks, are contributing to the softness.
Inventories at the service center level remain healthy, another source said, adding that “for the most part, service centers are buying and selling amongst themselves instead of placing orders with mills.”