US plate prices steady despite growing downward pressure

While there have been ongoing rumblings over the past month that the US domestic plate market is weakening and a drop in spot prices could be imminent, this has proven not to be the case just yet. Domestic plate spot prices remained unchanged in the last two weeks in the range of $46.50-$48.50 cwt. ($1,025-$1,069/mt or $930-$970/nt) ex-Midwest mill, as mills' approximately six to seven week lead times due to better than expected demand from the OEM sector have made for strong enough order books that few discounted deals are being reported in the market. While a large order or a "special customer" could garner a minor discount--for about $0.50-$0.75 cwt. ($11-$17/mt or $10-$15/nt)--the current spot price range remains stable, and is likely to remain largely unchanged for at least the next couple weeks.

Impending downward pressure still remains, however, and sources tell SteelOrbis that while January and February (so far) have been heavy import months, March arrivals are expected to be even higher with substantial volumes from Russia, Turkey, Ukraine, and Brazil and a flood of imports coming in from Korea--some as unsold positions. Meanwhile, Korean offers for June arrival are the most competitive at the moment in the range of $40.00-$41.00 cwt. ($882-$904/mt or $800-$820/nt) DDP loaded truck in US Gulf ports, while offer prices from Turkey are about $41.00 cwt. DDP loaded truck in US Gulf ports and approximately $1.00 cwt. ($22/mt or $20/nt) higher from Poland.