According to sources, so far no significant slab export deals were closed for September shipment by Brazilian producers.
A source linked to a major exporter mentioned that the company has adopted a “wait-and-see” strategy, as their clients have until the end of July to close deals. Additionally, Brazilian slab exporters are obliged to sell part of their production in the domestic market, as a way to access state tax benefits to compensate for tax paid in their domestic acquisitions of raw materials.
In the meantime, sources tell SteelOrbis that there is a gap of around $40/mt between the prices proposed by slab producers and the figure that clients are willing to accept.
One of the exporters has reportedly sold in the domestic market all its slab production earmarked for shipments in September.
Preliminary figures remain pointing to a much smaller volume of slabs being exported from Brazil in July, from the 512,700 mt exported in June.