For the second week, Brazilian slab producers are negotiating the product of the basic commercial grades for export at $330/mt, FOB conditions, a major market player told SteelOrbis.
The source added that different factors are affecting slab prices, as there is a new 3.0 million mt per year player, Companhia Siderurgica do Pecem (CSP), which started exports last month, putting downward pressure on prices in the merchant slab market.
“But on the other hand, current prices are already squeezing margins among slab producers, so production would be reduced if prices decline, helping to increase prices again,” he said.
He also mentioned that steel prices in China are sending mixed signals, in a sequence of ups and downs, increasing the difficulty for forecasts.
He also mentioned that steel prices in China are sending mixed signals, in a sequence of ups and downs, increasing the difficulty for forecasts.
In July, the Brazilian slabs exports declined by 39 percent to 277,700 mt, but an average price increased by 20 percent to $357/mt, FOB conditions.
Exports by ArcelorMittal Tubarao reached 150,900 mt at $369/mt, by ThyssenKrupp CSA 86,700 mt at $349/mt and by Gerdau Acominas 40,000 mt at $326/mt, all FOB conditions, price deals probably closed in May.
The customs authorities have failed to include the exports by CSP in the statistics of July.
The main destinations of July were the US (139,700 mt), the EU and Asia (46,000 mt each), Turkey (32,700 mt) and Canada (12,600 mt).
The main destinations of July were the US (139,700 mt), the EU and Asia (46,000 mt each), Turkey (32,700 mt) and Canada (12,600 mt).