The reference price for Brazilian slabs exports is now $580/mt, FOB conditions for the basic commercial grades, stable from last week, remaining among the highest reference prices in almost two years.
According to sources, perspectives for such reference prices remain unchanged, amid disputes between increased domestic and export demands, pointing to stable or slightly reduced prices.
But if foreign trade authorities decide, as the market expects, to add HRC to the list of Chinese imports subject to antidumping duties, domestic slab demand is expected to rise, as slabs would be used as feedstock to produce more HRC and replace imported material, increasing pressure on prices and leaving less material available for exports.
According to the Brazilian steel institute (IABR), the domestic production of slabs is operating at a 65 percent production pace, reflecting blast furnaces idled for revamping at some plants.
