Slab offers in the Brazilian domestic market are currently negotiated at the equivalent FOB price range of $420/mt to $430/mt, against $430/mt to $440/mt three weeks ago, with the reference price range referring to the basic commercial grades.
According to the source, only Usiminas remains outsourcing part of its slab supply to feed rolling operations, as CSN is operating with its two blast furnaces. At Usiminas, the Cubatao plant maintains a long-term shutdown for slab production.
The domestic slab market in Brazil, limited to a trade among slab producers when their blast furnaces are idle for refurbishment, is set to a decline over the next months, as the sale of flat steel products is expected to be reduced due to the closure of plants in the auto and domestic appliances industries, caused by the Covid-19 outbreak.
Today, the volume traded in the Brazilian domestic slab market is estimated at 100,000 mt per month.