A source linked to a Brazilian exporter told SteelOrbis that $475/mt, FOB conditions, is the new reference price for slab exports of the basic commercial grades.
The reference price was $465/mt last week, and the $10/mt increase in prices continues an uptrend that has lasted for more than three months due to both increased international demand and higher production costs.
“An incipient recovery of the domestic demand for steel products is not sufficient to sustain the profitability of the local production,” the source said, adding that exports remain as an important activity for the Brazilian steel industry.
In August, Brazil exported 474,000 mt of slab, 9.3 percent less than in July, at an average FOB price reduced by 3.6 percent to $405/mt.
Ternium Brazil Ltd, the former ThyssenKrupp CSA, exported 176,800 mt at $420/mt, Companhia Siderurgica do Pecem (CSP) exported 176,000 mt at $390/mt and ArcelorMittal Tubarao exported 121,100 mt at $404/mt, all FOB conditions, with price deals probably closed in June.
The main destinations of August were the US (169,300 mt at $423/mt), Latin America (132,400 mt at $400/mt, of which 100,000 mt at $406/mt to Mexico), Canada (78,800 mt at 406/mt) and Asia 31,300 mt at $310/mt), all FOB conditions.
