According to sources, the Brazilian slab producers are planning even higher prices for their shipments in March and April.
For sales to the US, plans are for prices in a range of $635/mt to $645/mt, against previous expectations in the $625/mt to $635/mt range, FOB conditions for the basic commercial grades.
For non-US destinations expectations are now for a range of $615/mt to $625/mt, against $605/mt to $615/mt previously, under the same conditions.
One exporter mentioned that the shortage of slab for export in Brazil is the main driver for the increase of prices, as the producers are focusing on feeding their own rolling facilities to serve their clients.
The source mentioned that the shortage of slab also reflects the fact that importing from CIS is no longer an alternative for usual importers, such as Usiminas, due to higher FOB prices, freight rates, lead times and quality restrictions.
Sources say that, so far, no deal has been effectively closed at the higher targeted prices
In December, Brazil exported 750,000 mt of slab, the highest monthly volume since October 2018, compared to 543,100 mt in November.
Ternium exported 184,700 mt at $819/mt to the US and 61,800 mt at $797/mt to Argentina. ArcelorMittal exported 136,700 mt at $774/mt to the US, 76,000 mt at $649/mt to South Korea and 43,100 mt at $674/mt to China. Pecem exported 84,800 mt at $757/mt to the US, 88,500 mt at $687/mt to Mexico and 53,800 mt at $727/mt to South Korea. CSN exported 20,600 mt at $910/mt to the US, all FOB conditions.
