The most recent Brazilian export slab sales to the US were closed in a range of $405/mt to $410/mt, against a range of $390/mt to $400/mt last week, FOB conditions for the basic commercial grades. Freight rates to the US are in a range of $14/mt to $18/mt to the East coast and $20/mt to $25/mt to the West coast. According to the source, the quota for slab arrivals in the last quarter of 2020 under US Section 232 are now concluded, with fresh sales for the first quarter 2021 quota expected to begin in November.
As for slab exports to Asia, demand from Asian countries remains strong, especially China, but increased freight rates are reducing margins for Brazilian producers. The last deal for slab exports to China was closed at $415/mt CFR conditions, with freight rates around $43/mt, against a FOB range of $355/mt to $365/mt and freight rates of $35/mt to $40/mt last week.
Sources tell SteelOrbis that currently there is virtually no demand from European clients, except from Turkey, but buyers are aiming for a range of $360/mt to $365/mt CFR, which is considered non-profitable by suppliers.
Preliminary numbers from customs are pointing to a decline, in July, from the 585,000 mt of slab exported from Brazil in June.