Without having imported slabs since November 2021, Brazilian flats producer Usiminas has reportedly closed a deal to import 40,000 mt of the product from China’s Baosteel, according to sources.
Usiminas partially feeds on external sources of slabs since it halted the crude steel production of its Cubatao plant in 2016.
During the current round of negotiations, for the supply of slabs in July, the company did not find (among local suppliers) a slab price that could allow for a profitable operation of its rolling activities.
A scenario of uncertainty remains among Brazilian slabs producers and their clients, with indications that no deal for shipments in July was closed so far, as there is a wide difference between prices that are being quoted and the level of prices that buyers are willing to accept.
A source aware of the negotiations mentioned that there is a $250/mt gap between offer prices and acceptable prices, without an immediate conclusion at sight.