Brazilian producers are negotiating slab for export to Asia in a range of $405/mt to $410/mt, FOB conditions for the basic commercial grades, equivalent to a range of $445/mt to $450/mt CFR conditions, compared to $435/mt to $440/mt CFR conditions two weeks ago.
Exports to Europe are now framed by a FOB price range of $420/mt to $425/mt, comparable to $400/mt to $405/mt two weeks ago, with freight rates stable at $20/mt to $25/mt.
Negotiations for slab exports to the US remain suspended, with prospective buyers expected to return to the market in November for exports under the Q1 2021 quota of US Section 232.
Sources also report an increased number of Brazilian export slab offers to Taiwan, Turkey, Mexico, Canada, France and China, all of which at FOB prices above $400/mt. Sources say demand is increasing “constantly,” and offer prices are expected to remain above $400/mt FOB to all destinations. Slab supply and production in Brazil is currently not sufficient to meet demand, and base price FOB quotations could reach up to $450/mt within weeks, sources say. Slab demand from Asia remains stable and high, while demand from Europe is lower, but increasing.
In the Brazilian domestic slab market, offer prices are around $440/mt FOB conditions, with the domestic freight rate estimated at $15/mt.
In July, Brazil exported 484,300 mt of slab, against 585,000 mt exported in June.
China was the main destination (215,700 mt at $328/mt), followed by the US (180,100 mt at $410/mt), South Korea (54,100 mt at $346/mt) and Canada (34,400 mt at $356/mt), all FOB conditions and different quality grades. The exporters were Ternium (240,200 mt at $388/mt), Pecem (221,100 mt at $338/mt) and Gerdau (23,000 mt at $324/mt).