Brazilian sources told SteelOrbis that a slab export deal with a client in the US West coast was closed at $968/mt, CFR conditions, representing in FOB terms a $5/mt increase from offers reported last week.
According to sources, the price expectations for negotiations related to shipments in July, set to start during the current week, are at $962/mt to the US East coast and $978/mt to the US West coast, both CFR conditions, maintaining previous expectations in relation to both FOB prices and ocean freight rates.
Another source mentioned that slab prices for export are expected to further increase, under a persistent scenario of increased prices for rolled steel products, and increased demand in the merchant slab market, coupled with a shortage of slab derived from production problems in different world regions.
Sources added that, in the case of the US, its economy has expanded by 6.4 percent on annualized basis during the first quarter, while the federal stimulus packages are expected to increase consumption of different steel products, paving the way for increasing slabs prices in the short term.