The reference price for Brazilian slab exports is now $585/mt, FOB conditions for the basic commercial grades, compared with $595/mt this past week, remaining among the highest reference prices in almost two years, although declining since a peak of $605/mt was achieved earlier in May.
According to sources, conditions in the Brazilian slab export market remain broadly unchanged, with prices stable to slightly lower. This reflects several factors, including stronger domestic demand as some imported products have become too expensive due to antidumping measures, the strengthening of the US dollar against the Brazilian Real (BRL), which supports domestic producers’ margins since most costs are incurred in BRL, and operational issues at some local producers’ blast furnaces.
Preliminary data from Secex, the foreign trade secretariat of the Ministry of Development, Industry and Foreign Trade, still indicates that Brazil’s slab exports in June are expected to match or slightly exceed the 390,500 mt exported in May.
