According to sources, the Brazilian slab producers are reportedly offering the product for export in a range of $620/mt to $650/mt, FOB conditions, for sales to non-US destinations.
This range compares to $700/mt FOB two weeks ago, a price that at that time faced resistance from clients, chiefly in Europe, resulting in very few deals effectively closed for shipment in September.
According to sources, the merchant slab market was affected by the recent announcement of the acquisition of the Brazilian Pecem slab producer by ArcelorMittal.
The company unveiled in a conference that it will split the production of Pecem between sales to its clients and sales to their own plants, raising doubts on how the 3 million mt per year production of Pecem will be available in the merchant slab market.
The analysts also believe that the slab export price is set to increase in the short term, as ArcelorMittal Tubarão has reduced its production pace and Usiminas is increasing slab stocks to maintain its rolling operations when a blast furnace will stop for revamping in 2023.
