Slab purchasing activity in the US has been unexciting so far in August, as many re-rollers are holding high inventories. By late July/early August, many re-rollers in the US had already purchased their slab requirements for August and September and have therefore made few purchases so far this month. However, activity is expected to pick in early September as mills secure slab tonnages for fall production. There are a number of slab offers available from usual sources: CIS region prices for August shipment are about $510/mt CFR, little changed since late July, while Mexican prices for both August and September shipment remain the range of $534-$540/mt CFR.
Brazilian prices for August were approximately $530/mt CFR, but sources told SteelOrbis that Brazilian mills are reluctant to divulge September prices to customers not seriously interested in placing in order. However, Brazilian slab sellers did indicate that any new price would be higher, considering price increases in the US flats market. In July, US flat rolled mills announced two price increases totaling $4.00 cwt. ($88/mt or $80/nt)--one mill even issued a third increase in early August for $1.50 cwt. ($33/mt or $30/nt)--and so far this month, US domestic flat rolled spot prices have been on a precarious uptrend; but while prices are increasing, most are unconvinced that the increases have much lasting power.