After concluding sales for shipment in October, Brazilian slab producers have not yet closed deals for shipment in November.
According to sources, the slab producers are under pressure to reduce their prices, which were above $900/mt FOB for sales to the US and around $880/mt FOB for other destinations, including the Brazilian domestic market.
The exporters have reportedly accepted the fact that they will have to reduce price expectations to close fresh deals, as their clients are arguing that slab prices must decline, along the whole production chain, from iron ore to rolled products.
For their turn, slab exporters mentioned that although iron ore prices have strongly declined, the price of steel products is not following a similar path, as the reduced steel production in China is positively affecting prices by tightening worldwide the supply/demand balance.
Sources believe that slab exports from Brazil, for shipment in November, are set to be closed in a price range of $840/mt to $860/mt, FOB conditions for the basic commercial grades.