According to a market source in Brazil, exports of slab to the US are currently negotiated at $560/mt, against a range of $540/mt to $550/mt last week, FOB conditions for the basic commercial grades.
The source mentioned that slab exports from Brazil are mostly focused in the US, reflecting the increased demand from the country and thus higher prices, coupled with perspectives for a 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 source, the lower steel production is set to increase steel prices in the short term, unless the production of pellets is resumed at Vale’s plants of Fabrica and Vargem Grande, currently idled due to the tragic accident at Vale’s waste dam in Brumadinho.
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.