Sources told SteelOrbis that the last deals for ex-Brazil slab sales for shipment in September were closed in a range of $920/mt to $935/mt, FOB conditions for the basic commercial grades.
The range is slightly lower than the first sales for the period, estimated at $920/mt to $940/mt, under the same conditions. Most of the sales were reportedly shipped to the US, around 50 percent of the volume, while the balance was shipped to Mexico, Canada, and the Brazilian domestic market.
Prices are expected to remain at a similar level for shipments in October, with possible increases throughout the month, as slab producer Pecem is planning a temporary closure of its sole blast furnace in October, reducing their availability of slab by 50 percent during the month.
Pecem and Ternium, the two Brazilian slab producers dedicated to external sales, are now expected to focus on the domestic market, feeding the rolling activities of Usiminas and CSN, due to the high demand and low production of flat steel products locally.