Brazilian slab producers are reportedly negotiating slab exports (US excluded) and domestic sales in a price range of $780/mt to $790/mt, FOB conditions.
The range represents a significant reduction from previous expectations of up to $855/mt for shipments in November, reflecting a downturn in prices in different world regions.
In the case of domestic sales, chiefly to Usiminas, the reduction reflects competition from imported slab, which in August were sourced from Russia, Vietnam and Indonesia, in average at $751/mt, FOB conditions.
Slab sales from Brazil to the US remain negotiated in a range of $820/mt to $830/mt, FOB conditions, frustrating expectations of up to $880/mt.
A source linked to a slab exporter in Brazil told SteelOrbis that HRC producers in the US are reluctant to close fresh deals for slab because their clients are also reluctant to increase their stocks of rolled products under the current high level of prices, fearing a possible downturn of prices.
Preliminary figures from customs are pointing to a reduction in September from the 534,100 mt of slabs exported from Brazil in August.