The Brazilian slab producers remain negotiating exports (US excluded) and domestic sales in a price range of $730/mt to $740/mt, FOB conditions, a range stable over the last two weeks.
Similarly, slab sales from Brazil to the US are negotiated in a range of $770/mt to $780/mt, FOB conditions, also stable over the last two weeks.
Sources mentioned that negotiations are moving at a slow pace, as buyers are reluctant to close deals at this price level, which they believe could put their margins at risk. Buyer sources say producers could afford to reduce the price and still achieve good margins, considering the reduction of iron ore prices in recent months.
Conversely, slab producers maintain expectations for an increase of prices in the short term, due to a slab production shortage estimated at 200,000 mt, resulting from a stoppage for repairs on blast furnace number 2 at Usiminas’ Ipatinga plant.
In September, Brazil exported 596,100 mt of slab, in average at $964/mt, against 535,300 mt at $974/mt in August, both FOB conditions.