According to sources, the demand for Brazilian slabs from steel companies in the US has risen recently, despite the increase in import tariffs imposed by the US authorities.
Analysts have identified three factors explaining this situation:
• Importers have accelerated deals to ensure material clearance before the higher tariffs are enforced.
• Importers expect ongoing negotiations between the US and Brazilian governments to result in import quotas at a lower tariff rate.
• Importers are concerned about the possibility of a shortage of slabs affecting their rolling operations.
Meanwhile, Brazilian producers continue to negotiate their slabs at a reference price of $535/mt, unchanged over the last two weeks.
Slabs exports to the US are being finalized at two different prices: one higher if quotas are available and another lower if the importer must pay the 25 percent import tariff.
Preliminary indications suggest Brazilian slab exports in February may exceed the 586,900 mt exported in January.