According to sources, the negotiations for Brazilian slab exports, for shipments in December, are now framed by a FOB range of $555/mt to $565/mt, FOB conditions, against a range of $560/mt to $570/mt last week, for sales to non-US destinations.
The marginal stability reflects the low limit of prices dictated by production costs in Brazil, sources say, as margins are already low, affecting profitability of the producers.
On the other hand, Brazilian producers Pecem and Ternium, which don’t have downstream operations in the country, still have the alternative to sell their slab locally, to Usiminas or CSN.
Usiminas remains building slab stocks due to the stoppage for revamping of a blast furnace next year, while CSN is buying slab, in addition to its own production, to maintain its rolling operations at full pace.
In October, Brazil exported 600,300 mt of slab, in average at $685, against 390,100 mt at $725/mt in September, FOB conditions.