After significant price reductions last week, when Brazilian export slab offers to Asian countries declined from a $420/mt to $430/mt range to $330/mt, a new reference price has been set at $320/mt, FOB conditions for the basic commercial grades.
According to a local source, exports to the US, after the fulfilment of the second quarter quota under US Section 232, have followed a similar path, from $460/mt two weeks ago, $360/mt to $370/mt last week, and $350/mt this week, all FOB conditions.
Sources tell SteelOrbis that in addition to a marketing focus on Asian countries, Brazilian producers are also maintaining sales efforts to the US, Canada and Mexico, mentioning that the international demand for slab is showing some degree of resilience, with reasonable perspectives of fresh sales, despite the impact of the Covid-19 outbreak.
In March, the Brazilian exports of slab reached 698,200 mt, the highest monthly volume since January 2019. The US was the main destination, with Ternium shipping 187,600 mt at $479/mt, Pecem 117,600 mt at $472/mt and ArcelorMittal Tubarao 117,300 mt at $446/mt, all FOB conditions.
Other destinations were Canada (131,600 mt at $422/mt), Uruguay (51,400 mt at $473/mt), Mexico (51,000mt at $352/mt), Poland (31,200 mt at $441/mt) and China (10,500 mt at $328/mt), all FOB conditions, different quality grades and price deals probably closed in January.