Brazilian producers remain negotiating slab for exports to the US in a range of $400/mt to $405/mt, while exports to countries in Europe are negotiated in average at $395/mt, a local market source told SteelOrbis. Both quotations refer to CFR conditions, for the basic commercial grades, while in the case of the US the reference is ports in the East coast.
The source mentioned that despite the recent reduction of iron ore prices, slab production margins remain squeezed by the combination of lower slab prices and high production costs, chiefly raw materials.
In September, Ternium exported 128,400 mt of slab at $463/mt to the US, ArcelorMittal exported 50,800 mt at $434/mt to South Korea, 17,400 mt to Canada at $445/mt, and 9,600 mt to the US at $472/mt, while Pecem exported 50,800 mt to Mexico at $418/mt, 49,756 mt to Belgium at $422/mt, 29,800mt to Poland at $456/mt, 20,600 mt to Canada at $445/mt, and 10,200 mt to the UK at $449/mt, all FOB conditions, with different quality grades and price deals probably closed in July.
