Brazilian steel producers are offering slab to US clients at $780/mt to $800/mt for the East coast and $808/mt to $828/mt to the West coast, comparable to ranges of $790/mt to $793/mt, and $795/mt to $800/mt, respectively last week, CFR conditions for the basic commercial grades, for shipments during April and May.
Sources mentioned that slab offers to the Brazilian domestic market are in a range of $760/mt to $780/mt, ex-works, no taxes included.
A combination of factors remain positively affecting prices, primarily global supply shortages. For example, a recent decision by Chinese authorities to restrain local crude steel production to reduce the level of emissions will reduce slab production, but because rolling operations will continue normally, upholding slab demand, slab availability is expected to be tighter worldwide.
Additionally, a short stoppage for maintenance at Pecem’s blast furnace in the coming weeks, along with technical problems still reducing output in at least one other slab producer, are also expected to reduce the availability of the product in the merchant slab market.
Iron ore prices at very high levels are also a factor, increasing slab production costs and putting additional pressure on slab prices.
With a high volume exported during the second half of February, Brazilian slab exports for the whole month should increase from the 322,600 mt exported in January, according to preliminary figures from the local customs authorities.