A source linked to a Brazilian exporter told SteelOrbis that $465/mt, FOB conditions, is the current reference price for slab exports of the basic commercial grades.
The price compares with $460/mt FOB last week, in an uptrend already lasting for three months, reflecting not only the limited offers from Brazilian producers, but also higher production costs, chiefly linked to prices of iron ore, coal and coke.
According to the source, the increased demand from the international markets is also playing an important role in the higher prices: “FOB prices are set to reach a level between $470/mt and $480/mt very soon,” he added.
In July, ArcelorMittal Tubarao exported slab $429/mt, Companhia Siderurgica do Pecem at $413/mt and ThyssenKrupp CSA at $393/mt, all FOB conditions, with price deals probably closed in May.
Preliminary figures from the Brazilian customs authorities point to a two-digit percentage increase in August from the 523,000 mt of slab exported in July.