According to a market source in Brazil, exports of slab to the US are currently negotiated at $540/mt, against $560/mt last week, FOB conditions for the basic commercial grades.
Another source mentioned sales to non-US destinations at $470/mt, FOB conditions for the basic commercial grades. The source said that sales to non-US destinations remain at low pace, reflecting the increased demand from the US and the reduction of steel production in Brazil, due to the shortage of iron ore pellets to feed blast furnaces located in the country’s southeastern region.
According to the Brazilian steel institute, IABR, the shortage of pellets due to the stoppage of production at the pellet plants of Fabrica and Vargem Grande, in the Southeastern region, is partially compensated by the supply from the pellet plants located in the north of the country.
Data from IABR indicates Brazilian crude steel production in Q1 2019 declined by 2.8 percent on yearly basis to 8.39 million mt, but for the whole year the perspectives are still for an increase of 2.2 percent to 36 million mt, compared with previous forecasts of 37.5 million mt.
Preliminary indications from the Brazilian customs authorities point to an increase in April from the 420,700 mt of slab exported from the country in March.