The gap between offers by Brazilian slab producers and price ideas from their clients in the US has reportedly declined to less than $100/mt, after hovering around $250/mt earlier in this week.
Sources aware of the negotiations have mentioned that the first deal for shipment in July is about to be closed, with price expectations in the range of $900/mt to $1,000/mt, FOB conditions, for clients in the US.
Details were unveiled about the import of slab by Usiminas from Baosteel, indicating that the volume imported was actually of 50,000 mt, at $950/mt CFR conditions, equivalent to $875/mt FOB.
The volume will be destined to the Ipatinga plant of Usiminas, due to a temporary loss of production, not to the Cubatao plant, which usually feeds on external sources of slabs.
In April, Brazil exported 642,800 mt of slab, against 634,100 mt in March.
Ternium exported 268,200 mt at $803/mt to the US, Pecem exported 92,500 mt at $684/mt to Mexico, 56,100 mt at $574/mt to the US, 49,300 mt at $612/mt to Poland, 29,500 mt at $666/mt to Italy and 16,800 mt at $720/mt to Canada, while ArcelorMittal exported 82,600 mt at $724/mt to the US, and 47,800 mt at $738/mt to France, all FOB conditions.
