Reflecting uncertainties on how steel prices would emerge after the Chinese holidays, producers in Brazil have reduced slab prices for shipments during April.
Brazilian slab export offers were priced for exports to the US at $764/mt for the East coast and $773/mt to the West coast, CFR conditions for the basic commercial grades.
Sources mentioned that slab prices are expected to increase back to pre-holiday levels in the short term, as steel prices in China remain firm and iron ore prices remain at high levels, putting additional pressure on steel production costs.
Additionally, sources say they expect increased prices due to the possibility of reduced material available for sale in the merchant slab market in the short term. The short stoppage for maintenance at Pecem’s blast furnace was postponed, although it still expected for the coming months, and another slab producer has reduced output due to technical problems.
Preliminary figures from customs remain pointing to a reduced volume of slab being exported from Brazil in February, compared to 322,600 mt exported in January.