Brazilian producers are negotiating slab exports on a CFR basis and basic commercial grades at $400-$405/mt to ports in the US East coast, $405-$410/mt to the US West coast ports, and $395/mt to countries in the EU.
According to the source, such prices, when translated into FOB conditions, are threatening the profitability of slab producers, considering that prices for raw materials like iron ore, coal and coke have not declined to the same extent as slab prices.
The sources ascribe the declining prices to the worldwide scenario of the steel industry, with rolling activities reduced due to negative perspectives for international trade flows.
In September, Brazil exported 367,400 mt of slab, against 434,300 mt in August.
The destinations in September were the US (138,100 mt at $464/mt), South Korea (50,800 mt at $434/mt), Mexico (50,800 mt at $418/mt), Belgium (50,100 mt at $422/mt), Canada (37,900 mt at $467/mt), Poland (29,900 mt at $456/mt) and the UK (9,800 mt at $472/mt), all FOB conditions, with different quality grades and price deals probably closed in June.
