A source from a major slab producer in Brazil told SteelOrbis that he is negotiating the product for export at $280/mt, FOB conditions for the basic commercial grades.
According to the source, the new reference price, although expected due to the reduction of steel prices in the international markets, was received with a degree of disappointment by the local slab producers, as it was stable at $290/mt FOB since early July, following a consistent decrease from the $400/mt FOB of February.
He added that under normal conditions slab exports at such price would not be profitable, but the recent devaluation of the BRL, vis-à-vis the $, has turned the price viable for reducing in $ terms the production costs linked to the country’s currency: “we are receiving more BRL’s for less $,” he said.
In July, ArcelorMittal Tubarao exported slab at $327/mt, ThyssenKrupp CSA at $335/mt and Usiminas at $305/mt, deals probably closed on May, all FOB conditions.