The base price for the negotiations for export of slab from Brazil has reached a stability of two weeks at $320/mt, FOB conditions, for the first time since a peak at $400/mt was achieved on early May, a market player told SteelOrbis.
A second source mentioned that there is no room for additional reductions, as the current price is already putting pressure on production costs.
“If prices go further down, margins will be squeezed and the production will be reduced,” the source said, adding that in such case the prices will have to go up again.
He mentioned that the US will remain the main destination of the Brazilian slabs, as the steel producers in the US did not restart the blast furnaces that were previously idled.
In June, ArcelorMittal Tubarao exported its slabs in average at $301/mt, ThyssenKrupp CSA at $318/mt and Gerdau Acominas at $259/mt, FOB conditions, with price deals probably closed in April.