The last slab export deals between Brazilian producers and their clients, for shipments in November, were closed at $535/mt, FOB conditions for the basic commercial grades.
According to sources, the first deals for shipments in November were closed two weeks ago at $555/mt, and there were expectations for closing the last ones at $540/mt, under the same conditions.
Producers were reportedly reluctant to close deals at such a reduced price level, as the pressure from production costs were pointing to very narrow margins. But the recent reduction in iron ore prices has increased the possibility of reducing slab prices while maintaining operational margins, despite the increased coking coal prices.
For shipments in December, negotiations will be framed by $535/mt FOB conditions, according to sources.
In August, Brazil exported 580,800 mt and imported 78,000 mt of slab. In September, the export volumes are expected to stay in line with August, while imports should decline.