Sources tell SteelOrbis that there are negotiations underway for Brazilian slab exports to Europe, with deals expected to be closed sometime this week.
These would be the first reportedly closed export deals for shipments in September, as so far only domestic sales were effectively closed for the period.
One source linked to an exporter said that the existing gap between offers and acceptable prices (currently around $40-$50/mt) is not relevant at this stage, as demand is far higher than the volume available for export, so the company is carefully evaluating the order of preference for closing deals, including the decision about more domestic sales or exports. Offers for export slab to the US remain around $750/mt FOB, while offers to non-US destinations are still around $700/mt FOB.
The source added that even if an export deal is closed this week, the shipment would have to be scheduled for the second half of September, as the deadline has passed, and shipments during the first half of September are no longer feasible.
As previously informed by SteelOrbis, the Tubarão plant of ArcelorMittal is operating at a reduced pace, while the Ipatinga plant of Usiminas has its blast furnace number 2 idled for repairs, and its blast furnace number three will stop for maintenance in April 2023, resulting in a perspective of shortage of slab for export.