Brazilian producers are still offering export slab of the basic commercial grades at a base price of $520/mt, FOB conditions. According to a local exporter, the local shortage of slab for export remains as the main driver for an uptrend, now boosted by the decision in China to focus domestic production for the domestic market, reducing the availability of material for export.
“But the recent reduction of raw materials prices, such as iron ore and coal, are playing in the opposite direction,” the source said, adding that with reduced steel production costs, slab buyers will try to negotiate at lower prices.
A second source mentioned that Brazilian producers are already offering slab to US consumers in a range of $510/mt to $515/mt, FOB conditions, while price deals were reportedly closed in a range of $500/mt to $505/mt, FOB conditions, for export to Indonesia.
Currently, only ArcelorMittal Tubarao, Ternium Brazil Ltd and Companhia Siderurgica do Pecem are exporting slab from Brazil, while Usiminas and CSN are actually buyers of slab and Gerdau is focusing the slab production of its Ouro Branco plant as feedstock to its own rolling operations.