Exports of Brazilian slab to Asian countries remain in the range of $530/mt to $540/mt, the same as last week, and to Europe the range is also stable at $510/mt to $520/mt, while for exports to the US the range remains $519/mt to $523/mt for the East coast and $525/mt to $530/mt to the West coast, all CFR conditions, considering the product of the basic commercial grades.
Sources tell SteelOrbis that prices are showing resilience at those levels, as the availability of the product remains tight. The deficit between demand and supply in the merchant slab market is estimated at 1.2 million mt on a yearly basis, and because of this, sources say price increases are not being ruled out.
However, the supply deficit scenario could change in December, when ArcelorMittal Tubarao’s blast furnace #3, with its 3.0 million mt of yearly capacity, is set to reach full capacity following the restart scheduled for October 25.
Preliminary indications from customs are pointing to a reduction in October from the 419,600 mt of slab exported from Brazil in September.