A source from a major slab producer told SteelOrbis that he is negotiating slab for export at $270/mt, FOB conditions for the basic commercial grades, comparable to $280/mt one month ago.
The second price reduction in less than two months was already expected by the market, due to the reduced demand from the international merchant slab market, he said, adding that the devaluation of the BRL vis-à-vis the $ has compensated for part of the loss in revenues, as the production costs incurred in BRL became relatively lower.
In August, Brazil exported 515,700 mt of slab, 15 percent less than in July, at an average FOB price 5.6 percent lower, $307/mt.
The main exporters were ThyssenKrupp CSA (258,300 mt at $313/mt), ArcelorMittal Tubarao (174,300 mt at $307/mt) and Gerdau Acominas (67,700 mt at 300/mt), all FOB conditions.
The main destinations were the US (318,300 mt at $315/mt), Turkey (81,300 mt at 295/mt), Asia (46,800 mt at $264/mt), the EU (39,100 mt at $315/mt) and Canada (30,200 mt at $309/mt), all FOB conditions.