Brazilian slab producers are negotiating the product of the basic commercial grades for export at $320/mt, FOB conditions, against $330/mt last week, a major market player told SteelOrbis.
Since early July, the price has oscillated between $320/mt and $330/mt FOB, reflecting different pressures such as increased slab offer from a new producer, Companhia Siderurgica do Pecem (CSP), producers margins squeezed by production costs, the recent valuation of the Brazilian currency vis-à-vis the American Dollar, and mixed signals from steel prices in China.
Another local slab producer said that he is still negotiating slab for export in a range of $330/mt to $340/mt FOB, as the slab from its state-of-the-art caster command a premium for not requiring scarfing operations by its clients at hot rolling operations.
In July, ArcelorMittal Tubarao exported slab at $369/mt, ThyssenKrupp CSA at $349/mt and Gerdau Acominas at $326/mt, all FOB conditions, with price deals probably closed in May.