Transaction prices of hot rolled coil and quarto plate in the US climbed steadily throughout most of the review period, gaining 25 and 29 percent, respectively, for the 304 grade. Much of the positive movement for strip was due to escalating alloy surcharges rather than any improvement in basis values. In fact, negotiated basis prices for type 304 fell by almost 2 percent. Twelve months ago, market sentiment was quite buoyant and availability limited. However, at the turn of the year, inventories expanded and imports started to pose a threat. The situation remains fragile. The plate market was firmer with low stocks and good project demand. Japanese prices moved up in September and again in May. During the third quarter, raw material shortfalls led to late deliveries and a backlog of orders. Shortages were most notable in the plate category. Higher nickel charges and supply tightness enabled the producers to push through the May increase. Prices of grade 304 coil and plate are now, respectively, 9.8 and 9.5 percent higher than 12 months ago. Today, demand from mill contract customers is firm. The general scene is sluggish.
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