A source linked to a Brazilian steel producer told SteelOrbis that slab export deals are being closed at prices around $430/mt, against $410/mt last week, CFR conditions for ports in the US East coast, while exports to Europe are traded at $435/mt CFR, against $415/mt CFR last week.
The source mentioned that the increase is driven by both higher production costs, iron ore and coal/coke, and higher demand, chiefly from the US. He added that more price increases are expected in the coming weeks.
According to the source, most players believe that the import tax on Brazilian steel products entering US ports will not be applied to slab, as the steel industry in the US has a deficit in the production of semi-finished items, depending on imported slab to feed their rolling activities.
In November, Brazil exported 480,100 mt of slab, against 562,700 mt in October.
