Steel plate mills seek late-summer price increases

Nucor, Evraz Claymont lead the charge

-- Purchasing, 7/16/2008 11:09:00 AM

Tight supplies of steel plate and rising scrap costs for producers look to translate into substantially higher prices by late summer. The June average price for spot buys of cut-to-length steel plate of $1,276/ton was 62% higher than a year earlier. Now, with steel plate prices averaging $1,340 in July, Nucor of Charlotte and Evraz Claymont of Maryland are pushing for August list prices at $1,440 to offset a recent increase in the cost of shredded scrap.

Domestic supplies tightened from strong demand in a wide range of end-use markets, says analyst Michelle Applebaum, managing director of Michelle Applebaum Research Inc. in Chicago, pointing to barge, ship and rail car building; such energy-related uses as wind-tower construction and infrastructure development. Strong global demand also has increased the ability of U.S. mills to export plate to construction projects in the Middle East and road and bridge-building projects in numerous developing countries.