A Brazilian slab producer source unveiled optimism about increased steel consumption and consequent slab imports into the US, due to the $1 trillion infrastructure passed by the US Senate, which if signed into law will substantially increase steel demand in the US. Such an increase in finished steel demand is expected to increase Brazilian slab exports to the US’s major trading partners Canada and Mexico as well, the source added.
But so far, producers are maintaining their offers for October shipments in the same price range as September, $920/mt to $935/mt, FOB conditions for the basic commercial grades.
No export deals were closed so far, but producers expect the first deals to be closed until the end of this week, as there is a limited offers of slab for the period; Pecem is expected to produce only half of its capacity due to a stoppage for maintenance in October.
Preliminary numbers from customs are pointing to a volume of slab exported from Brazil in August in line with the 534,100 mt exported in July, but analysts believe that estimates could reduce over the next weeks if domestic slab sales increase, chiefly to Usiminas and CSN.