Following an increase from $465/mt to $495/mt two weeks ago, the Brazilian producers are still negotiating slabs of the basic commercial grades for export in a range of $490/mt to $500/mt, FOB conditions, a local exporter told SteelOrbis.
The source added that the stability chiefly reflects a small number of negotiations during the period of the year-end holidays.
He further mentioned he has expectations of higher prices in the short term, which is in line with the evolution of international steel prices.
In December, Brazil exported 609,800mt of slabs, 6.9 percent more than in November, at an average FOB price increased by 4.7 percent to $493/mt.
ArcelorMittal Tubarao exported 223,500mt at $492/mt, Companhia Siderurgica do Pecem exported 218,900mt at $493/mt and Ternium Brazil exported 158,600mt at $503/mt, all FOB conditions, with price deals probably closed in October, while Gerdau Acominas and Usiminas exported lower tonnages, in average at $350/mt.
The main destinations of the Brazilian slabs in December were Asia (209,500mt), the EU (194,800mt), the US (172,500mt) and Latin America (33,000mt, all shipped to Argentina).
In 2017, Brazil exported a total of 6.5 million mt of slabs, not surprisingly an all-time yearly record for the country, as for the first time the new entrants Pecem and Ternium have simultaneously operated at full capacity for the full year.
