A local market source told SteelOrbis that with the recently announced but yet-to-be-finalized deal for Brazilian slab to be permanently excluded from the 25 percent import tariff in exchange for a quota system, it is likely that prices should increase in the short term.
According to the source, the Brazilian product has gained competitiveness in the US market, as other slab producers did not receive the same exemption. But supply shortages near the end of the year could also affect prices, as all Brazilian steel exports to the US will have to be reduced by 20 percent from the average exported over the last three years.
The source added that the last slab export deal was closed at $595/mt, FOB conditions for the product of the basic commercial grades, unchanged over the last weeks, adding that such reference is expected to reach $620/mt in the short term.
In April, Brazil exported 486,300 mt of slab, 1.6 percent more than in March, at an average FOB price 9 percent higher at $536/mt.
Ternium exported 223,700 mt at $544/mt, Pecem exported 145,500 mt at $524/mt, and ArcelorMittal Tubarao exported 117,10 0mt at $537/mt, all FOB conditions, with price deals probably closed in February 2018.
The main destinations were Europe (200,000 mt), the US (193,900 mt), Turkey (40,400 mt) and Canada (39,700 mt).