Brazilian producers remain negotiating slab for sales to Asian countries in a price range of $435/mt to $445/mt CFR, with freight rates to the region also stable in a range of $40/mt to $45/mt.
Prices are also stable for exports to Europe, with a price range for negotiations at $440/mt to $450/mt CFR, and freight rates also stable at $20/mt to $25/mt.
Negotiations for exports to the US remain suspended, with prospective buyers expected to return to the market in late October or early November for exports under the Q1 2021 quota of the US section 232.
Preliminary indications by customs remain pointing to a reduction in August from the 484,300 mt of slabs exported from Brazil in July.
According to sources, the current supply/demand balance in world terms for the merchant slab market is favorable to buyers, as the availability of slab for export is estimated at 17.3 million mt per year, while the demand is limited to 16.2 million mt per year.
But the scenario is likely to change in the medium term, as demand is currently increasing faster than the supply, with expectations of a balance in early 2021.
Today there are 16 steel plants worldwide feeding on outsourced slab, while 17 slab plants are dedicated totally or partially to the supply of slab to other plants.
