The basic FOB price for negotiation of basic commercial grades slab for export from Brazil is now $230/mt, against $240/mt two weeks ago, a major producer told SteelOrbis.
According to the source, the perspectives regarding the halt in slab production at Usiminas’ Cubatao plant, scheduled for January, were not sufficient so far to reverse the downward trend of the price, which peaked at $530/mt FOB in July 2014.
The source said that he remains optimistic with the stability or even an increase of the price in the short term, in view of the reduced offer of slab: “the merchant slab market is very limited in volume, so prices will eventually have to reflect the annual reduction of 4.0 million mt of slab in the market,” he said.
In October, Usiminas did not export slab; ArcelorMittal Tubarao exported 241,600 mt at $298/mt, ThyssenKrupp CSA exported 150,300 mt at $291/mt, and Gerdau Acominas exported 64,900 mt at $297/mt, all FOB conditions, with price deals probably closed on August.