Brazilian producers are negotiating slab of the basic commercial grades for export at $520/mt, FOB conditions, a local exporter told SteelOrbis. The reference price compares with $485/mt over the last two weeks, the source said, adding that the uptrend is expected be maintained over the next weeks.
A second source mentioned negotiations at $525/mt, but it was not possible to confirm if a price deal was effectively closed.
In August, Ternium Brazil exported 176,800 mt of slab at $420/mt, Pecem exported 176,000 mt at $390/mt and Tubarao exported 121,100 mt at $404/mt, all FOB conditions, with price deals probably closed in June.
Preliminary figures from the country’s customs authorities point to an expected reduction of the volume of slab exported in September from the 474,000 mt exported in August.
Sources agree that a shortage of material for export, rather than demand, is pushing prices up, as only ArcelorMittal Tubarao, Ternium Brazil Ltd and Companhia Siderurgica do Pecem are exporting slab.