Sources tell SteelOrbis that Brazilian slab producers are having difficulties in closing fresh deals with their clients in the US, who are reportedly postponing negotiations in the hope of declining prices in other regions.
It is expected that fresh deals should be closed until June 30, the deadline for ordering slab to be shipped during August.
So far, a reference price of $995/mt FOB remains valid, but with increasing prices of finished steel products worldwide, producers reportedly believe that slab export prices will follow a similar path.
In Brazil, only Pecem and Ternium have no rolling capacity, having all their slab production available for sales. With intense domestic demand for flat rolled products, it is likely that even these producers could give preference to have their slab sold the domestic market, if justified by better prices.
A combination of factors remains positively affecting prices, such as increased worldwide demand and reduced availability of slab, due to producers in different world regions finding difficulties achieving full production pace.