A source linked to a Brazilian exporter told SteelOrbis that the current reference price for slab exports to the US is $570/mt, FOB conditions for the basic commercial grades, compared to a range of $580/mt to $590/mt FOB last week.
According to the source, there is currently a fierce competition among Brazilian slab producers to export slab to the US before reaching the tariff-free quota level. In this “buyer’s market,” US importers are in a position to push for lower prices.
The source also mentioned that, for slab exports to Europe, the reference price is currently $540/mt FOB. A second source, aware of the negotiations, mentioned at least one slab sale to Europe was closed at $550/mt FOB.
In April, Ternium Brazil exported slab at $544/mt, Pecem at $524/mt, and Tubarao at $537/mt, price deals probably closed in February 2018. The main destinations of the Brazilian slab in April were the US (197,400 mt), the EU (160,100 mt), Mexico (48,600 mt), Turkey (40,400 mt) and Canada (39,800 mt).