Brazilian slab producers have closed deals with clients in the US at $816/mt to the East coast and at $832/mt to the West coast, CFR conditions for the basic commercial grades, for shipments in May and June. This compares respectively to offers at $836/mt and $852/mt last week, reflecting reduced FOB prices, as freight rates were stable over the last two weeks.
Sources mentioned that slab sales were also closed with a client in Canada, at price similar to those closed with US clients in the West coast, but with a lower volume. In the Brazilian domestic market, sales were reportedly closed at $800/mt, ex-works, no taxes included.
With perspectives for increased slab exports from Brazil in March, steel producers such as CSN and Usiminas are reportedly closing deals to import slab to feed their rolling plants, as their slab production is currently reduced, chiefly in the case of Usiminas, which has had the steelmaking area of its Cubatao plant closed since 2016.
Preliminary numbers from customs remain indicating a significant increase in March from the 491,100 mt of slab exported from Brazil in February.