According to local sources, at least one Brazilian producer has closed a deal for export to a client in the US East coast at $947/mt, CFR conditions, against $912/mt late last week.
The source mentioned that producers are trying to close deals at $962/mt CFR to the East coast and $978/mt CFR to the West coast, for delivery in June/July.
A second producer mentioned that it remains trying to close fresh deals for slab exports to the US at $890/mt-$900/mt, FOB conditions, but no deal was closed so far at that range.
With a persisting scenario of supply shortage and increased demand in the merchant slab market, the Brazilian steel producer Usiminas is considering the restart the steel producing area of its Cubatão plant, located in the state of Sao Paulo, which has been idled since 2016 due to lack of demand. The restart would include the sintering, blast furnaces and steel conversion areas, with a 4.0 million mt of yearly capacity. The rolling area of the plant was not idled, feeding on outsourced slab.
Meanwhile, domestic slab sales in Brazil are reportedly being closed at the equivalent to $900/mt, ex-works, no taxes included, against $880/mt late last week.