Brazilian producers are negotiating slab for export to Asia at $400/mt, FOB conditions for the basic commercial grades, equivalent to a range of $435/mt to $440/mt CFR conditions, a local source told SteelOrbis. The range compares to $415/mt CFR one week ago.
Exporters were positively surprised with increased demand from Turkey and Italy, with reference price range of $400/mt to $405/mt, FOB conditions, for the negotiations, although no deals were immediately closed. Depending on the country of destination, freight rate to Europe remains in the $20/mt to $25/mt range, stable over the last weeks.
For sales to the US, demand has retreated now that the US section 232 quota for shipments that will arrive in the fourth quarter of 2020 has concluded. Negotiations are expected to resume in November for shipments of material expected to reach US ports in January. For the Q1 2021 quota, Brazilian exporters are targeting a range of $420/mt to $425/mt, FOB conditions.
At least one slab producer is negotiating the supply of a small volume to a client in the Brazilian domestic market, in a price range of $375/mt to $380/mt, ex-works, no taxes included. The source mentioned that the supply refers to an integrated producer in the process of restarting a blast furnace, with a temporary shortage of slab to feed its rolling activities.
Preliminary numbers from customs remain pointing to a decline in July from the 585,000 mt of slab exported from Brazil in June.