Brazilian producers are expecting to close deals for slab exports to the US at $849/mt for the East coast and $866/mt for the West coast, CFR conditions, for shipments in June of the basic commercial grades.
Such prices compare respectively to $839/mt and $856/mt for the most recently deals closed for such exports, sources told SteelOrbis.
Today there is a high level of optimism among players in the Brazilian steel industry regarding potential changes to US Section 232 quotas that currently limit exports of steel products from Brazil to the US.
According to local sources, US President Biden’s proposed $2.3 trillion infrastructure bill would require a volume of steel that can only be produced in the US with the use of imported semifinished products, as the US usually is short of such products. Currently, Brazilian steel exports to the US, without the additional 25 percent tariff imposed by President Trump, is limited to 3.5 million mt per year.
Preliminary numbers from customs remain indicating a significant increase in March from the 491,100 mt of slab exported from Brazil in February.