The Brazilian producers exported 283,200 mt of slabs in November, 38 percent less than in October, at an average FOB price of $261/mt, 11.7 percent lower, according to the country’s ministry of development, industry and foreign trade, MDIC.
The main exporters were ArcelorMittal Tubarao (139,500 mt at $245/mt), ThyssenKrupp CSA (91,800 mt at $282/mt) and Gerdau Acominas (51,800 mt at $282/mt), all FOB conditions.
A source from a major producer told SteelOrbis that the reduced volume exported has two main factors: a seasonal decline of the demand from North American countries, associated to the months of November and December, and the absence of Usiminas from the merchant slab market. He believes that the slab exports from Usiminas were not replaced by the other players.
Usiminas is reportedly stockpiling slabs, as its Cubatao plant will stop crude steel production in January, maintaining its rolling operations with slabs supplied by the Ipatinga plant.
In November, the Brazilian slabs exports to the US declined from October by 45.1 percent to 143,700 mt and exports to Canada declined by 28.9 percent to 18,800 mt, while exports to Indonesia went up by 82.3 percent to 113,200 mt and exports to India fetched 7,500 mt, against no exports in October.
According to the source, slabs of the basic commercial grades are currently negotiated for export from Brazil having $230/mt, FOB conditions, as the base price for negotiations.