Brazilian slab exports to the US East coast are now priced in a range of $742/mt to $748/mt, against $650/mt two weeks ago, while to the US West coast the reference now is $750/mt to $755/mt, against $660/mt two weeks ago. Such quotations are CFR conditions for the basic commercial grades. Shipments from current negotiations are scheduled for late February and March 2021.
Sources mentioned that due to higher production costs, Brazilian producers are not competing for exports to Asia or Europe, focusing now on the US and Latin America. At least one integrated producer is currently importing scrap, as an alternative to compensate for higher production costs, chiefly iron ore prices.
A scenario of increased demand from all world regions persists, with production of slab not sufficient to fulfill demand in the short term.
Preliminary numbers from customs are pointing to an increase in December from the 321,400 mt of slab exported from Brazil in November.