Slab exports from Brazilian producers reached 285,200 mt in April, 34 percent less than in March and the lowest monthly volume since May 2014, according to the country’s ministry of development, industry and foreign trade, MDIC.
According to a source from a major slab producer, the low price of the product in the international markets is the main factor behind the downturn, adding that slabs of the basic commercial grades are currently traded for export at $320/mt, FOB conditions, posing a threat to the profitability of the producers.
In April the average FOB export price has reached $385/mt, 7.1 percent less than in March, for deals probably closed during February.
All exports of April were from ThyssenKrupp CSA and by Arcelor Mittal Tubarao, as other traditional slab exporters Gerdau Acominas and Usiminas did not participate in the market, while CSN is not a regular exporter of the product.
Exports by ThyssenKrupp CSA went down by 71 percent to 61,400 mt at an average price 5.8 percent lower, $400/mt FOB, all destined to the US, while exports by ArcelorMittal went up by 32 percent to 223,700 mt at $380/mt FOB, 3.5 percent less than in March.
Total shipments to the US went down by 38.9 percent to 171,000 mt, shipments to Asian countries went down by 51 percent to 40,000 mt and shipments to the EU went down by 16.2 percent to 33,000 mt.
During April, a shipment of 41,000 mt by ArcelorMittal Tubarao was sent to Turkey at $312/mt FOB, against no shipments in March.
Turkey has been a regular importer of Brazilian slab since September 2014.