Brazilian slab producers are negotiating exports to their clients in the US in a range of $990/mt to $1,000/mt, FOB conditions for the basic commercial grades. One deal was reportedly closed at $990/mt, against a previous reference price for a deal closed at $980/mt late last week.
However sources tell SteelOrbis that so far, producers have not reached their initial target of $1,000/mt FOB, although optimism for such a level continues due to intensive demand for slab and a supply deficit in different world regions, due to producers failing to achieve full capacity.
“Producers are negotiating shipments for August and they still have until the end of June to conclude such deals,” a source linked to a slab producer told SteelOrbis, adding that he believes that achieving $1,000/mt is just “a matter of time.”
In May, Brazil exported 464,400 mt of slab, against 562,800 mt in April. Ternium exported 210,500 mt at $822/mt to the US and 31,400 mt at $811/mt to Argentina, Pecem exported 99,500 mt at $763/mt to the US and 17,800 mt at $816/mt to Canada, and ArcelorMittal exported 83,500 mt at $809/mt to the US and 16,200 mt at $824/mt to Canada, all FOB conditions.
Meanwhile, Usiminas imported in May 104,500 mt of slab at $646/mt from Russia, and CSN imported 30,200 mt at $620/mt from Vietnam, also FOB conditions.