SteelOrbis has learned of an export slab order from a Brazilian producer to a client in the US closed at $685/mt, FOB conditions. If confirmed, the sale price (for shipment in January 2022) represents a significant decline from previous expectations by producers, in the range of $760/mt to $770/mt, under the same conditions, while for destinations other than the US, the expectations were around $740/mt.
Another sale to the US, by a different exporter, was confirmed by SteelOrbis in the range of $695-$700/mt FOB.
Sources believe that the demand for shipments in January 2022 have experienced a sharp decline recently, due to a reduction in HRC demand; however, sources believe that slab demand and prices should recover for shipments in February.
Last week, a source aware of the negotiations told SteelOrbis that there was a difference, in the range of $50/mt to $60/mt, between offers by producers and acceptable prices by consumers.
It now seems that the wait-and-see strategy is showing advantageous for the slab buyers, as the price of the product is declining in most world regions, with impact on the Brazilian prices, despite the reduced production in Brazil related to blast furnaces stoppages at Usiminas and Pecem.
Preliminary numbers from customs remain pointing to an increase in November from the 419,100 mt of slab exported from Brazil in October, while there are indications that an import cargo of 35,000 mt of slab has arrived in Brazil during November.