Slab exports of the basic commercial grades are being offered from Brazil this week at $580/mt, FOB conditions, a local exporter told SteelOrbis. Last week, the reference price was in the $550/mt to $555/mt range.
According to the source, there are already confirmed deals closed at $560/mt and $570/mt, FOB conditions, in an uptrend reflecting a lack of material available for short-term supply.
The source mentioned that the 25 percent tariff imposed on steel imports by the US, could possibly exclude slab if US mills apply for an exemption, as the country has a shortage of domestically produced semi-finished steel.
In 2017, the US was the destination of 2.44 million mt of Brazilian slab, of which 1.28 million mt from Ternium Brazil, 645,000 mt from ArcelorMittal Tubarao, and 380,000 mt from Pecem.
In February, Brazil exported 559,200 mt of slab, 5.7 percent less than in January, at an average FOB price increased by 6.5 percent to $377/mt.
Companhia Siderurgica do Pecem exported 298,000 mt at $354/mt, ArcelorMittal Tubarao exported 143,600 mt at $414/mt, and Ternium Brazil exported 117,500 mt at $389/mt, all FOB conditions, with price deals probably closed in December 2017.
