Brazilian slab producers are currently negotiating with US-based clients on orders to be shipped in August, however sources mentioned that the producers’ target price of $1,000/mt, FOB conditions for the basic commercial grades, has not been reached so far, adding that at least one such deal was closed at $980/mt FOB.
Buyers are reportedly adopting a “wait and see” strategy, due to the uncertainties generated by Chinese authorities; an attempt to reduce prices along the steel production chain, chiefly for iron ore, has led to a scenario in which certain steel prices are decreasing, such as scrap and pig iron, while others are increasing, such as iron ore, HRC and CRC.
According to a local source, the scenario is expected to become clearer next week, when buyers and sellers are expected to reach the reference price that will govern slab export prices for shipments in August onward.
Sources say slab producers remain confident that prices are set to increase, as demand for the product remains strong while the supply remains in deficit, as producers in different world regions are failing to achieve full capacity at their plants.