Brazil exported 456,800 mt of slabs in October, 37 percent less than in September, at an average FOB export price slightly increased to $296/mt.
The reduced volume exported reflects chiefly the suspension of slab exports by Usiminas, which recently announced the suspension of steel production at its 4.5 million mt/year capacity Cubatao plant, located in the state of Sao Paulo.
According to sources, the suspension of slab exports by Usiminas is in line with a policy of building up stocks of the product, to feed the hot rolling lines of both its plants, Ipatinga and Cubatao, when the slab production at Cubatao is suspended in January 2015.
It is not clear if Usiminas will have to buy additional slabs in the market.
Slabs exports of October were from ArcelorMittal Tubarao (241,600 mt at $298/mt), ThyssenKrupp CSA (150,300 mt at $291/mt) and Gerdau Acominas (64,900 mt at $197/mt), all FOB conditions, with price probably negotiated two months ago, all FOB conditions.
According to an exporter, slabs are currently negotiated FOB for export at $250/mt, maintaining a downward trend after a short period of stability at $290/mt between July and August.
The main destinations of the Brazilian slabs exports in October were the US (261,800 mt at $299/mt), Indonesia (62,100 mt at $272/mt), Turkey (40,500 mt at $289/mt), Mexico (40,400 mt at $301/mt), Canada (26,500 mt at $313/mt) and Germany (25,400 mt at $307/mt), all FOB conditions.