A source with access to the ongoing negotiations among Brazilian slab exporters and consumers of the product in the US told SteelOrbis that, at least so far, exporters did not close fresh deals at their target price, in the range of $600/mt to $610/mt, FOB conditions for the basic commercial grades.
According to the source, the latest deals are being closed in a range of $580/mt to $590/mt, under the same conditions, which is approximately the same price level seen in April, before the uncertainties derived from the imposition, and subsequent exclusion of Brazil, of a 25 percent tariff on US steel imports.
The source added that the price scenario could change in the short term, as most of the production from ArcelorMittal Tubarao and Ternium Brazil is already committed to long-term supply contracts, while the volume available for spot sales is almost entirely at Companhia Siderurgica do Pecem.
In April Ternium Brazil exported 223,700 mt of slabs at $544/mt, Pecem exported 145,500 mt at $524/mt and Tubarao exported 117,100 mt at $537/mt, all FOB conditions, with price deals probably closed in February 2018.
The main destinations of export slab in April were the US (197,400 mt), the EU (160,100 mt), Mexico (48,600 mt), Turkey (40,400 mt) and Canada (39,800 mt).
