US: Is the wider spread between HRC and plate the “new normal”?
The wide spread between prices for hot-rolled coil and plate has been blamed for the fast-falling US plate market in the past few weeks, according to sources who spoke to Fastmarkets.
For the month through Thursday July 11, Fastmarkets’ steel hot-rolled coil index, fob mill US, averaged at $538.20 per short ton ($593.26 per tonne); the assessment for steel cut-to-length plate carbon grade, fob mill US, averaged at $750 per short ton ($826.73 per tonne) in the same comparison.
Given those averages, the current price spread stands at $211.80 per short ton ($233.47 per tonne) - higher than the $100-140 per short ton (roughly $110-155 per tonne) range that was considered “normal” in the past.
While some sources argued that plate should fall further and move more in line with HRC, others were unfazed by the wide spread, noting that the gap remained above $200...