A major slab producer in Brazil told SteelOrbis that the product is sold for export now at $340/mt FOB for the base commercial grades, against $360/mt FOB a couple of weeks ago.
“This level of prices is already a threat to profitability in export sales,” the source said, adding that two of the country’s slab producers have already suspended exports of the product.
Another slab producer told SteelOrbis that his last sale was still closed at $370/mt FOB, adding that the company benefits from the fact that its production, even for the base commercial grades, commands a premium over the production of its peers, as its slabs requires no scarfing treatment before rolling.
Brazilian slab exports in February totaled 317,900 mt, 48 percent less than in January, but considering the volume exported in January and February, 926,000 mt, there was actually an increase of 75 percent on yearly basis for the period.