Domestic slab sales in Brazil were recently closed at the equivalent to $880/mt for the basic commercial grades, sources told SteelOrbis, the same reference price for a sale to Mexico, with both deals for shipment in October.
For sales to the US, under the same conditions, the reference price remains in a range of $910/mt to $920/mt, from a 50,000 mt export deal recently closed.
Brazilian slab exports were reportedly concluded for shipments in October, reportedly not only by the usual exporters Pecem and Ternium, but also by ArcelorMittal, which has rolling operations in Brazil. Pecem and Ternium have their Brazilian operations limited to slab production.
In July, Brazil exported 534,100 mt of slab at $955/mt, while importing 108,300 mt of the product at $751/mt, both FOB conditions.
For the first three weeks of August, Brazilian slab exports remain pointing to a volume similar to July’s, while no slab imports have entered the country’s ports during the period.
Increased slab exports and reduced imports of the product reflect the fact that the supply of rolled products in the domestic market is returning to normal, after a period of shortage derived from low steel production by units that were shut during the initial phases of the Covid-19 pandemic.