A source from the Brazilian slab producer ThyssenKrupp CSA confirmed to SteelOrbis ongoing negotiations for the supply of slabs to its compatriot flats producer Usiminas.
According to the source, CSA could supply slabs to the Cubatao plant of Usiminas, which will stop the production of crude steel in January while maintaining its rolling operations.
If the negotiations succeed, CSA will have the opportunity to operate at its full nameplate capacity of 5.0 million mt per year, currently limited to 4.0 million mt per year due to market restraints.
“Operation at full capacity is an excellent perspective for CSA, increasing revenues and reducing the impact of fixed costs,” the source said, adding that although the negotiations are advanced, no deal was reached so far.
CSA slab usually commands a premium over the price of other Brazilian slab, as the product requires no scarfing operations due to the high quality of its state-of-the-art caster.
A source from another major steel producer told SteelOrbis that current negotiations for export of slab are framed by a basic FOB price of $230/mt for the basic commercial grades.