A source from a Brazilian slab producer told SteelOrbis that the last deals for the exports of the product are now being closed at $360/mt FOB for the basic commercial grades, against $400/mt FOB three weeks ago, adding that at least one of the local producers has stopped slab exports due to lack of profitability.
“The devaluation of the BRL vis-à-vis the $ (12 percent so far in 2015) has a positive impact on our exports, by reducing the costs associated to the local currency, but on the other hand, coal and coke costs, which are imported, and even iron ore costs traded in $ in spite of produced locally, have a negative impact on margins,” the source added.
According to the country’s ministry of development, industry and foreign trade, MDIC, in February the Brazilian exports of slabs went down by 48 percent from January to 317,900 mt, at an average FOB price 6.4 percent lower, $426/mt.
Exports by ArcelorMittal Tubarao went down by 55 percent to 131,900 mt, at an average price of $390/mt FOB, while exports by ThyssenKrupp CSA went down by 29 percent to 129,000 mt at $450/mt FOB and exports by Gerdau Acominas went down by 55 percent to 56,900 mt at $454/mt FOB.
The main destinations of the Brazilian slabs in February were Europe (100,000 mt), Asia (91,600 mt), the US (89,200 mt) and Latin America (37,000 mt).