According to sources, demand for ex-Brazil slab by US steel firms continues to be strong. Not only is it a core raw material in their re-rolling processes, but US firms have maintained a high capacity utilization rate given the expectations of robust domestic growth. Additionally, September shipments purchased correspond with stronger seasonal demand in the US.
As raw material and flat steel prices have increased globally, Brazilian producers were able to achieve deals at $8-10/mt higher compared to a week ago. Deal prices increased to $390-398/mt FOB from $380-390/mt FOB. Although, a source noted that any faltering in global raw material and Chinese steel prices could return deal prices to the range of $380-385/mt FOB. Offers are presently at $400-410/mt FOB.