Plate market says, 'the heat is on,’ as prices and demand soar

Market commentary

One Midwest-based plate market source said demand continues to be consistent, which he thinks correlates directly to mill outputs. He explained that because domestic mills have to take on spot orders that once would have been filled by imports, the market is tight for spot buyers.  

“Price increases are going to continue, and customers will have to pay those prices. Imports level out the prices. We don’t buy imports, but they do help regulate the market,” he said.  

The same source added, “It’s tough out there for buyers but it beats being slow.” 

A different Midwest source who currently imports plate from Canada said his service center just upped its price sheet. He explained that his organization waited until it was confident its customers could handle increases. With mills consistently issuing increases and lead times holding, it was an opportunity to win back a little more of the margin it had been sacrificing.  

“We have raised our prices quite a bit and we’re still competitive. Heavier plate supply is OK. It’s improved but could still be a problem down the road. Light plate is more available but getting tighter,” he said.  

On the West Coast, a sheet and plate distributor said plate continues to be a strong market and logistics constraints aren’t a problem. 

“We always like things a little stronger but we’re doing fairly good. I was with some other distributors and they’re also doing OK,” he commented. “For plate, I think we’re a little bit ahead of the curve. Some distributors didn’t believe price increases would hold and didn’t order as normal, and they’re regretting it now, both in not having sufficient inventory and even higher prices now.”

Prices 

On Tuesday, June 2, SMU’s weekly price assessment indicated that current spot prices range from $1,220 per short ton (st) to $1,300/st. The average transaction price was $1,260/st. 

All prices are ex-works domestic mill.