CRU: Higher costs and demand will raise plate prices

The US market is currently seeing a push for higher prices driven by seasonal demand and strong project activity. Because service centers have allowed inventories to fall below the levels needed to support this growth, a period of restocking is necessary. This environment is encouraging domestic producers to increase their price offers.

If this trend persists, buyers will likely look to diversify their supply chains, sourcing more material from neighboring regions and international producers to mitigate rising domestic costs.

In the European Union, prices are moving higher due to a combination of rising raw material cost and the impact of carbon-related trade risks. Strength in infrastructure and construction is providing a solid foundation for these price hikes. While import options are returning to the market, they are priced closely to domestic levels, offering little relief for buyers.

In the UK, the market is slowly clearing out lower-priced port stocks. However, because the UK operates outside of the EU carbon framework, it remains a destination for competitive material from Asia and Turkey. This steady flow of imports is expected to keep a lid on how high domestic prices can climb in the immediate future.

Post-holiday demand and input cost rise to aid Asian plate prices

The plate price outlook across Asia is more cautious than in Western markets. In China, prices are expected to rise gradually after the Chinese New Year holiday period. Market activity is expected to pick up slowly, as it will take time for post-holiday demand to materialize.

Across Southeast and Northeast Asia, demand is expected to remain sluggish. While it is difficult for prices to climb in a quiet market, high input costs will prevent prices from dropping. Meanwhile, Indian prices are likely to fluctuate within a narrow range. As previous restocking efforts conclude and more supply enters the market, the pressure for further price hikes is expected to ease.