A source from a major slab producer in Brazil told SteelOrbis that $350/mt, FOB conditions, is the new reference price for export negotiations of the product with basic commercial grades.
The price compares with $340/mt last week and is the new peak of an upward move since $230/mt in December 2015.
The source mentioned that the uptrend reflects links in recent years between prices in the merchant slab market and the prices of the Chinese HRC.
On the supply side, only ThyssenKrupp CSA, Gerdau Acominas and ArcelorMittal Tubarao are exporting slab from Brazil, as Usiminas suspended crude steel production at its Cubatao plant and is actually buying slab from CSA, while CSN assumed a long term marketing strategy of not exporting slab.
In March, CSA exported its slab at $246/mt, Tubarao at $240/mt and Gerdau at $234/mt, all FOB conditions, with price deals probably closed in January.