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Mar.28.2024 1USD=7.0948RMB
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US Steel Plate Prices Rise After Latest Mill Increases

https://en.steelhome.com [SteelHome] 2018-01-17 08:57:18

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Steel plate prices strengthened in the United States after mills announced another round of increases, depending on energising factors such as higher scrap prices, optimism about 2018 demand and potential curbs on steel imports.

American Metal Market’s price assessment for cut-to-length plate was $35.50 per hundredweight ($710 per ton) on Friday January 12, up by $1 per cwt from $34.50 per cwt a week earlier.

Lead times are generally six to seven weeks but there are reports of eight-week waits.

Buyers had scoffed when US steel mills announced four rounds of price increases, of which only about half were reflected in actual transactions. But producers might finally be gaining momentum now, according to market participants.

“The pendulum is definitely swinging toward the mills,” one plate buyer said. “The mills are not as willing to negotiate. [They have adopted] a ‘take it or leave it’ attitude... It’s a combination of the scrap [price rising] and the strong order book.”

The fourth round of plate price increases since November occurred January 5-9, with US producers raising prices by $50 per ton.

US scrap shredders are also raising their prices, and sentiment in the industry is improving after the successful achievement of legislation for corporate tax cuts and renewed belief that a government infrastructure spending plan might be imminent.

The US Department of Commerce said on January 11 that it had submitted its steel Section 232 report to the White House - a reminder to the market that more severe import curbs could be possible if the president exercises his option to impose duties on imports of material thought to threaten national security.

A US West Coast distributor said there was not enough current demand to argue for higher plate prices, so the mills must be basing their pricing resolve on trade-related speculation. Steel import volumes, including plate, already appear to be on the decline, according to Commerce Department data for December.

“They feel emboldened that they’re probably going to have a favorable decision, so not as much competition or at least not as many tons coming in,” the same distributor said. “Demand is up a little bit for plate, but it’s not blowing stuff out the door.”

Mills have announced price increases totaling $180 per ton within a two-month period “but haven’t collected anywhere near that much,” a US Midwest plate consumer said. Current pricing is “firm and rising,” he added, but normally there would be more end-user buying when people truly believe that prices are going up.

“If people don’t want to buy at the new numbers and lead times come in, prices won’t be any higher,” he said.

The price increases, if fully achieved, would put plate prices at their highest level since 2014.

Lead times in excess of eight weeks could prompt buyers to consider overseas offers that they would otherwise ignore, one mill source said.

“If the lead times push out, then you’re getting into the import range,” he added. “You’re already close.”

source: metalbulletin
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