The Brazilian slabs exporters remain negotiating deals having $505/mt, FOB conditions for the basic commercial grades as reference, stable for the last three weeks.
Although not ideal, such price remains profitable for the Brazilian exporters, as the average production costs for Pecem, Tubarão, and Ternium is estimated by analysts at $400/mt.
Despite the recent imposition of a 25 percent import tariff by the US, producers expect that a system of quotas or a lower import tax could be implemented for sales to the US. Negotiations between the two countries continue, with the Brazilian side coordinated by Vice President Geraldo Alckmin.
In February, Brazil exported 382,800 mt and imported 7,000 mt of slabs.
SECEX reports that in the first two weeks of March, customs recorded two slab exports totaling 110,000 mt and one slab import of 35,000 mt at Brazilian ports.