With the closure of the second quarter quota under US Section 232, Brazilian slab producers are shifting their focus from the US to Asia, at prices significantly lower than those heard during the last several weeks, a local source told SteelOrbis.
For exports to Asian countries, the reference price is now $330/mt, against a range of $420/mt to $430/mt over the last few weeks, FOB conditions for the basic commercial grades.
Under the same conditions, the few exports to the US are based on a range of $360/mt to $370/mt FOB, comparable with a previous reference price of $460/mt FOB. However, such FOB offers do not include the 25 percent Section 232 tariff that is applicable now that the second-quarter quota has been filled. Sources tell SteelOrbis that a few deals are still being closed with US clients at higher, tariff-included prices.
According to sources, as industries around the world are halting or reducing operations, slab exports are decreasing in a cascade effect along the production chain.
Nonetheless, figures from Brazilian customs authorities are pointing to an increase in March from the 301,500 mt of slab exported from the country in February, with price deals probably negotiated in January.