Brazilian producers are offering slab exports to their clients in the US at $836/mt to the East coast and $852/mt to the West coast, CFR conditions for the basic commercial grades. These prices compare to $851/mt and $867/mt, respectively, last week.
Sources say the price reduction reflects lower prices in FOB terms, as freight rates were roughly stable over the period.
Sources also mentioned that producers have decided to reduce prices in their offers as an alternative to increase sales over the next few weeks and take advantage of the increased demand from the US and of the reduced availability in the merchant slab market.
Regardless of the price reduction, slab prices remain positively impacted by the high level of iron ore prices and reduced production of slab in China and Brazil, coupled with lower production levels at steel plants after stoppages for refurbishment.
Even Brazil, a traditional export player in the merchant slab market, is having to import slab due to the shortage of domestic production. The country has already imported more than 100,000 mt in January and February, against a total 37,800 mt in 2020.
Preliminary numbers from customs are now indicating a significant increase in March from the 491,100 mt of slab exported from Brazil in February.