Brazilian slab producers have closed deals this week for April shipments to the US East coast at $786/mt and to the West coast at $802/mt, CFR conditions for the basic commercial grades.
The deals were closed in the price range offered, but as freight rates have increased over the week, the FOB reference price had to be reduced to achieve the desired CFR price point.
A local source mentioned that expectations for offers for shipments in May are around $830/mt for the East coast and $850/mt for the West coast, both CFR conditions, having as reference CIS-region slab prices increasing over the week.
The shortage of slab derived from a stoppage of Pecem and reduced production in China continue to positively affect prices, along with iron ore prices stable at very high prices impacting production costs.
In February, Brazil exported 491,100 mt of slab, against 322,600 mt in January. Ternium exported 252,500 mt at $651/mt to the US and 29,900 mt to Argentina at $535/mt; ArcelorMittal exported 86,700 mt to the US at $663/mt, 33,400 mt to Canada at $653/mt and 7,400 mt to Thailand at $540/mt; Pecem exported 50,300 mt to the US at $652/mt and 30,900 mt to South Korea at $568/mt, all FOB conditions and different quality grades.
During February, Pecem focused on serving rolling activities of other steel producers in the domestic market, currently facing a shortage of steel products in different areas.