Brazilian producers remain negotiating slab for sales to Asian countries in a price range of $490/mt to $495/mt CFR, the same as last week, while freight rates to the region remain roughly 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 $475/mt to $480/mt CFR, and freight rates stable at $20/mt to $25/mt.
The scenario also remains unchanged in relation to the US, with a reference price of $460/mt CFR conditions for the basic commercial grades, although negotiations are currently suspended due to Section 232 quota limitations. Negotiations are expected to restart soon after the presidential elections in the US in early November.
A local source mentioned that slab prices so far have shown resilience, despite the recent decline of iron ore prices, which usually affects prices in the whole steel production chain. In his view, lower iron ore prices are currently reflecting reduced prices in the HRC futures market.
The supply/demand balance for the merchant slab market remains unchanged, with supply availability estimated at 17.3 million mt per year and demand still in a level of 16.2 million mt per year, a scenario favorable to buyers.
The merchant slab market includes 17 plants on the demand side and 16 plants in the supply side.