Brazilian slab export deals to the US are now being closed in a price range of $470/mt to $480/mt, FOB conditions for the basic commercial grades. According to the source, such price would translate into $490/mt to $500/mt CFR conditions to the US East coast, comparable with $475/mt CFR over the last weeks. The latest shipments to the US refer to first volumes under the second quarter quota 2020.
For shipments to Europe, the export slab reference price has increased from $425/mt to a range of $430/mt to $440/mt, also FOB conditions for the basic commercial grades.
According to the source, the higher prices result chiefly from increased demand from the US, with the increased domestic demand playing a secondary role.
The source added that so far the problems in China have not affected steel prices, but next week, with the return to operation of industrial activities in China after the extended holidays and closures due to the coronavirus outbreak, sources say the impact will be more noticeable by measuring the production pace of such activities against the demand for steel products.
In January, Brazil exported 682,700 mt of slab, against 510,000 mt in December.
The main destinations were the US (361,400 mt at $409/mt), Asia (183,700 mt at $341/mt) and Canada (119,400 mt at $372/mt), all FOB conditions, with different quality grades and price deals probably closed in November 2019.
