Brazilian slab export offers are being negotiated for exports to Europe at $345/mt, against $340/mt last week, FOB conditions for the basic commercial grades. The price translates into $365/mt under CFR conditions.
For sales to Asian countries, prices have increased from $330/mt last week to a range of $340/mt to $350/mt, also FOB conditions, an increase pushed by intense demand from China, with deals effectively closed recently at this price range.
For exports to the US, negotiations are in a range of $355/mt to $360/mt, FOB conditions. One week ago, offers were in the range of $350/mt to $355/mt FOB.
It is estimated that today Pecem and Ternium, the Brazilian slab producers dedicated to exports, are operating at a 90 percent capacity rate, while the other integrated producers are operating around 40 percent.
Differently from previous assumptions, indications now point to a similar volume of slab being exported from Brazil in May, when compared with the 513,400 mt exported in April.