For the second consecutive week, slab export prices in Brazil have increased by $10/mt from the previous week, now reaching a range of $565/mt to $575/mt to Asia, $554/mt to $558/mt to the US East coast, $560/mt to $565/mt to the US West coast and $530/mt to $540/mt to Europe, all CFR conditions for the basic commercial grades.
Sources tell SteelOrbis that a surge in demand from virtually all world regions is pushing prices upward and postponing, at least in the short term, perspectives of lower prices due to the seasonal reduction of industrial activity in December and January.
Meanwhile, there are indications that the recently restarted blast furnace No. 3 at ArcelorMittal Tubarão will have its output mostly destined to the domestic market. This has eased fears among steel producers that a huge and sudden slab offer could negatively impact slab prices.
With the restart, Tubarão could ultimately add about 3 million mt per year of slab to the merchant slab market, currently estimated at 17 million mt traded per year in global terms.
Another Brazilian blast furnace, at CSN, has also been restarted, but its output is unlikely to be dedicated to produce slab for export, as the company has a long-term marketing policy of not participating in the merchant slab market.
With increased volumes exported during the third week of the month, Brazilian slab exports are now expected to stay roughly in line in November compared to the 460,800 mt exported in October.