Platts reported that the slowdown in US manufacturing and construction activity continues to put downward pressure on all grades of steel plate. The Platts reference price of standard grade A36 carbon plate moved down USD 60 per short tonne and settled at USD 900 per short tonne ex works US Southeast. Transaction prices have steadily lost traction since September, even as mills have reduced rolling schedules to try and balance supply with falling demand.
The current Platts reference price for plate shipped into the Gulf Coast is USD 740 per short tonne CIF Houston, although some Brazilian plate is being offered as low as USD 715 per short tonne for late March 2009 or early April 2009 delivery at Houston. No deals could be confirmed for the Brazilian material at the lower price, but one source speculated that a major plate distributor with a dock facility in Houston may be preparing to take a position.
Plate prices rose rapidly through the summer of 2008, fueled by a boom in demand from the energy sector, commercial construction and general manufacturing. But demand in all sectors has weakened considerably. Even the wind farm market has stalled.
Many steel traders and distributors see little chance of increased order activity until Washington passes an infrastructure stimulus package. In the interim, contractors and steel fabricators are holding off from restocking depleted inventories.
President elect Mr Obama said that he wants to save or create as many as 4 million US jobs through a series of tax incentives and spending on public infrastructure projects. He specifically said his plan would create 500,000 jobs by investing in improved energy efficiency and doubling the amount of alternative energy, including wind and solar, in the next 3 years. Budget estimates of Obama's plan range from USD 700 billion to USD 800 billion in total.