Sources tell SteelOrbis the Brazilian slab sector is more optimistic now, compared to the initial days of the Covid-19 pandemic. At least one exporter has already concluded its portfolio of sales for delivery until July, with prices slightly increased from the levels seen over the last few weeks.
For exports to Asian countries, the reference price now is $330/mt and for Europe it is $340/mt, FOB conditions for the basic commercial grades, against $320/mt for both destinations over the last few weeks.
For sales to the US, offers are in a range of $350/mt to $355/mt, under the same conditions, against $350/mt over the last weeks. Such offers are for shipments in July, reportedly included in the third quarter quota under US Section 232.
Sources say exporters remain optimistic for increased prices over the following weeks, first for exports to Asia and Europe and then for shipments to the US. The optimism reportedly derives from a drastic reduction of the availability of slab for export, as many blast furnaces in Brazil are being temporarily closed to cope with reduced demand.
Figures currently released by customs authorities remain pointing to a sharp decline of the volume of slab being exported from Brazil in April, when compared with the 698,200 mt exported in March.