The Brazilian slab producers are negotiating exports to the US in a range of $595/mt to $600/mt, FOB conditions for the product of the basic commercial grades, against a range of $590/mt to $600/mt last week, a market source SteelOrbis.
The source added that most of the deals are currently closed at $600/mt or very near that figure, reinforcing expectations of additional price increases.
According to the source, the Brazilian producers can close slabs export deals to the US, free from the 25 percent import tariff, until September, for shipments that will occur in November, considering that the volume of the “tax-free” exports are limited to 80 percent of the volume exported in 2017.
The source mentioned that he is not aware of fresh deals closed for exports of slabs to the EU, as sales to that region are not competitive at $600/mt. For exports the EU the last reference remains at $540/mt.
In May, the Brazilian exports of slabs fetched 311,000mt, against 486,300mt in April, in a decline ascribed chiefly to a two-week strike by truck drivers during the month.
The exporters were Companhia Siderurgica do Pecem (158,400mt at $516/mt), ArcelorMittal Tubarao (91,200mt at $549/mt) and Ternium Brazil (61,400mt at $548/mt), all FOB conditions with price deals probably closed in March.