A major steel producer in Brazil told SteelOrbis that his last slab export was closed at $320/mt FOB for the basic commercial grades, against $330/mt FOB two weeks ago and $340/mt FOB four weeks ago.
The source mentioned that such price is a limit for the profitability of operations, adding that at least one slab producer has stopped exports of the product.
“At this level of price, the profitability derives from quality extras, such as product ultimately destined to the auto industry, which can command a premium of more than $100/mt over the basic quality grades,” the source said.
In March, ThyssenKrupp CSA exported slab at $425/mt FOB, ArcelorMittal Tubarao at $394/mt FOB and Gerdau Acominas at $437/mt FOB.
The US received 280,000 mt from the 432,000 mt of slab exported by Brazil in March.