A source linked to a major slab producer in Brazil told SteelOrbis that the merchant slab market is in a transition period, when the combination of prices and the volumes sold is moving towards a point of balance to achieve profitability.
“When we speak about the basic commercial grades, most sources point to $270/mt, FOB conditions, as the reference for negotiations”, he said, adding that the company is currently closing deals for such grades in the $300/mt to $310/mt FOB range, as the basic quality of its slabs exceeds that of its competitors.
“Our slabs need no scarfing operations, so we have a base premium of $30/mt, which added to the grade-related premium can increase the price to more than $400/mt,” he said.
In June, ThyssenKrupp CSA exported slabs at $350/mt, ArcelorMittal Tubarao at $309/mt, Gerdau Acominas at $326/mt and Usiminas at $298/mt, all FOB conditions.