Sources mentioned that slab export prices in Brazil are stable over the last week, at $545/mt to $555/mt to Asia, $534/mt to $538/mt to the US East coast, $540/mt to $545/mt to the US West coast and $510/mt to $520/mt to Europe, all CFR conditions for the basic commercial grades.
There are expectations of prices lowering in December, when the blast furnace #3 of ArcelorMittal Tubarao, restarted on October 25, is set to achieve its full production capacity, increasing by 3.0 million mt per year the supply of slab to the global merchant slab market.
That market, estimated at 16 million mt traded by year, currently operates at short supply, expected to be balanced by the end of the year. Sources tell SteelOrbis that three slab producers in Iran have recently joined the supply side of the market, with a combined capacity of about 10 million mt.
In October, Brazil exported 460,800 mt of slab, against 419,600 mt in September. The exporters were Ternium (247,500 mt), Pecem (165,700 mt) and CSN (47,600 mt).
The destinations were the US (212,600 mt at $456/mt), China (88,600 mt at $358/mt), Argentina (50,100 mt at $476/mt), Turkey (48,300 mt at $416/mt), Mexico (42,600 mt at $471/mt) and Canada (18,600 mt at $490/mt), all FOB conditions and different quality grades.