Brazilian slab export offers have declined for the second consecutive week, with deals effectively closed in a reference of $780/mt, against a range of $790/mt to $793/mt to the US East coast last week. To the US west coast, the reference now is $785/mt, against a range of $795/mt to $800/mt, last week. Both quotations are CFR conditions for the basic commercial grades, with a decline reflecting reduced FOB prices and stable freight rates.
Despite the weekly price reduction, expectations are pointing to an increase of prices in the merchant slab market in the short term, as sources tell SteelOrbis that a supply shortage is expected due to upcoming maintenance at Pecem’s blast furnace.
Slab producers in Brazil are continuing to focus exports on the US due to tax exemptions from US section 232, while smaller volumes remain negotiated with clients in Canada and in the Brazilian domestic market.
In January, Brazil exported 322,600 mt of slab, against 409,600 mt in December, a decline reflecting reduced volumes exported during the two last weeks of the month.
Ternium exported 87,300 mt to the US at $533/mt and 62,900 mt to Argentina at $519/mt; ArcelorMittal Tubarao exported 63,500 mt to Canada at $522/mt and 59,100 mt to the US at $497/mt, while Pecem exported 49,800 mt to South Korea at $455/mt, all FOB conditions, different quality grades and price deals probably closed in November.
Meanwhile, Usiminas imported in January 38,500 mt of slab from Russia at $456/mt, FOB conditions.