A slab exporter in Brazil told SteelOrbis that he has closed a deal with a client in the US, involving a small volume for shipment in November, at a price around $830/mt, FOB conditions.
The source mentioned slab demand has reduced slightly in the US, as the level of stocks within the steel production chain has increased. The source said the new reference for ex-Brazil slabs to the US is about $820/mt to $830/mt FOB, compared to $870/mt to $880/mt FOB last week.
Brazilian slab producers and their clients remain negotiating prices for shipments in November, in a slow pace dictated by uncertainties in relation to declining iron ore prices, while steel prices are following a different path.
Sources mentioned that buyers claim that with such reduced iron ore quotations, slab prices could be reduced while retaining healthy margins for slab producers, who are suggesting that such iron ore prices could recover in the short term and put their margins at risk.