During the first week after the Chinese holidays, Brazilian steel producers are offering slab to their US clients at $790/mt to $793/mt for the East coast and $795/mt to $800/mt to the West coast, CFR conditions for the basic commercial grades, for shipments during April and May. Such prices are in average $30/mt higher than those of the deals effectively closed last week.
A source mentioned that deals have not been closed yet at that price level, adding that it’s “only a matter of time,” as increasing prices for steel products in most regions and iron ore prices roughly stable at very high levels continue to positively affect slab prices.
With a high volume exported during the third week of February, Brazilian slab exports for the whole month are now expected to increase from the 322,600 mt exported in January.
Meanwhile, a short stoppage for maintenance at Pecem is still expected within the coming months, while technical problems are reducing output in at least one large slab producer, putting additional pressure on prices in the merchant slab market due to risks of undersupply.