Negotiations for the exports of Brazilian slab for April and May delivery have not started so far, but producers maintain plans to increase prices in average by $40/mt, compared to current levels of $450/mt to $460/mt FOB for exports to the US and $405/mt to $410/mt FOB for other destinations.
The information is from a source linked to a local exporter, quoting FOB prices for the basic commercial grades. The source mentioned that the higher prices are set to compensate for higher costs, linked chiefly to iron ore and scrap. As an example, he mentioned that the price of blast furnace grade pellets became so high that the product is now having its use limited to the production of high-grade slab.
In January, Brazil exported 699,000 mt of slab, in average at $492/mt, FOB conditions. The exporters were Pecem (283,900 mt at $476/mt), ArcelorMittal Tubarao (217,100 mt at $504/mt), Ternium (177,900 mt at $501/mt), and CSN (20,100 mt at $521/mt), all FOB conditions.
Preliminary indications point to a significant decline in February from the volume of slab exported in January.
