Since our last report, domestic plate spot transaction prices have remained on par, with spot offers priced between $35.00 cwt. to $36.00 cwt. ($772/mt to $794/mt or $700/nt to 720/nt) FOB mill. Larger customers requesting significant tonnage may still be able to negotiate deals slightly below this range. Mills want to get prices higher but lackluster demand in combination with the excess import inventory still available at some ports is making this difficult.)..
Despite the weak demand, domestic spot prices are expected continue to trend slightly upward through March and April as mills attempt to pass on their January/February raw material price increases and take advantage of the positive momentum in the overall US flat rolled market; however, this momentum may stall or even reverse if raw material or HRC prices decrease.
While US plate spot prices are unlikely to slip back to levels seen in mid-2009, it will likely be some time before offers return back to early 2008 levels. As the outlook for construction for 2010 and even 2011, remains bleak, it's not expected that plate orders will increase any time soon.
In terms of imports, Brazilian spot offers are being offered at approximately $34.50 cwt. to $35.50 cwt. ($761/mt to $783/mt or $690/nt to $710/nt) FOB port, although deals may be available to those purchasing significant tonnage. Traders have, however, continued to express little interest in import offers, which may be due to long lead times and concerns regarding speculative buying, especially as there is still some excess inventory at some of the ports offered at $32.00 cwt. to $33.00 cwt. ($705/mt to $728/mt or $640/nt to $660/nt). Malaysian offers, although previously rumbled, have not come into play, and Mexican offers (ranging from $33.50 cwt. to $34.50 cwt. [$739/mt to $761/mt or $670/nt to $690/nt]) at the border are not attractive enough entice would-be buyers.