With reduced production due to stoppage for maintenance at Usiminas’ blast furnace #3 in Ipatinga, coupled with operational problems in other Brazilian slab producers, the export price of the product remains in uptrend, due to the shortage of material for export.
According to sources, slab exports by Brazilian producers to their clients in the US are now in a reference price of $740/mt, FOB conditions, against $720/mt last week.
One exporter, which has reportedly concluded its sales for shipments in March, mentioned that he is very optimistic about future prices, adding that for sales for shipments in April, expected to start over the next couple of weeks, he is considering $790/mt, also FOB conditions, but conceded that such plan could be changed in the meantime.
For sales to non-US destinations, $660/mt, FOB conditions, is the new reference price, against $630/mt one week ago.
In December, Brazil exported 482,600 mt of slab, while imported 40,400 mt of the product. Similar volumes are expected for January.