NEW YORK The domestic steel plate market continues to
face downward pressure as buyers remain wary of quiet end
markets, sources have told AMM
Its been kind of quiet. Nothing has changed on the
plate side. Were all waiting for something to explode,
for something to get going, said one Midwest buyer.
A jumpstart to this economy, big contracts to be awarded,
something major to happenbut its just not
Market participants said discrete plate prices slid slightly to
$35.50 per hundredweight ($710 per ton) f.o.b. Midwest mill
this past week, down from the prior weeks prices of $36
per cwt ($720 per ton) from mills said to be carrying plentiful
supply. Plate in the South and Northeast is said to be priced
lower at $35 per cwt ($700 per ton), sources said.
Much of the reason for the depressed plate prices continues to
be domestic mills carrying oversupplied prime-grade
inventories, while others added that Februarys lowered
ferrous scrap levels do not add much room to support higher,
and even steady, prices.
Prices seem to be under pressure. Lead times are
downeven to three weeksand it shows that the market
isnt there at all, said one mill source. My
feeling is that things wont pick up until the early
second quarter. The first quarter is a washout and service
centers are really quiet.
While a number of domestic mills hiked sheet prices in late
January by some $40 to $50 a ton, plate millswhich at
times mirror moves in the sheet markethave not followed
suit, buyers reported earlier this month (
amm.com, Feb. 1
). The plate market, others added,
has remained very competitive.
There is some business out there, but things are very
competitive on the pricing (in the end markets), so it
doesnt make a whole lot of sense with what domestic mills
want, said a second Midwest buyer. Usually, the
first quarter is our strongest. But thats definitely not
the case this year. This is usually the time with the strongest
uptick in pricing and demand, but were not seeing any of
that in the Midwest.
Buyers also reported that prices for heavier-gauge plate seem
to have dropped quite substantially.
Some said there are bright spots, including the agriculture and
heavy machinery sectors. However, they added that mills remain
hungry for business.
Things are good and steady right now. (However), the
mills have been responding really quickly (to my inquiries).
And theyre quick to respond with their quotes, said
a third Midwest buyer.
Imports, on the other hand, have continued to slow, as some
46,622 tonnes of cut-to-length plate were scheduled to hit U.S.
shores in January, according to import license application data
from the Commerce Departments Import Administration. That
compares to the 101,151 tonnes of plate that arrived in the
same month of 2011.
Imported plate prices have hovered around $35.50 to $36.50 per
cwt ($710 to $730 per ton) to the Port of Houston, causing
difficulty in the spot market, traders say.