A source linked to a Brazilian steel producer told SteelOrbis that some negotiations for slab exports to the US are being delayed, due to uncertainties surrounding the announcement of renewed tariffs on Brazilian steel exports to the US.
The source conceded that most of the negotiations are not delayed, with fresh deals being closed at prices around $410/mt, against $400/mt last week, CFR conditions for ports in the US East coast.
According to the source, at least one importer in the US has slab stored at a US port, waiting for January to clear customs under a fresh Section 232 quota, a strategy that will be complicated if the import tax is effectively adopted.
Meanwhile, exports to Europe are now traded in a range of $415/mt to $425/mt CFR, against $380/mt to $390/mt CFR last week, the increase reflecting higher production costs, chiefly those associated with iron ore and coal/coke costs.
In November, Brazil exported 480,100 mt of slab, against 562,700 mt in October. ArcelorMittal exported 160,700 mt to the US at $458/mt and 10,900 mt to Canada at $362/mt; Ternium exported 148,700 mt to the US at $422/mt and 16,500 mt to China at $311/mt; and Pecem exported 143,300 mt to the US at $410/mt, all FOB conditions, different quality grades and price deals probably closed in September.
