A source linked to a Brazilian exporter told SteelOrbis that slab export prices will increase in average by $40/mt, for deliveries in April and May.
The source mentioned that the price of the iron ore has already increased by $10/mt over the last weeks, reflecting the shortage of supply after Vale’s recent iron ore dam burst; as a result of the incident, the company has halted the operation of major mines in the southeastern state of Minas Gerais.
According to the source, the price of ferrous scrap has also increased recently, putting additional pressure on finished steel prices.
The next round of export slab negotiations will start with prices of $500/mt to $510/mt for deliveries to the US and $455/mt to $460/mt to other destinations, both FOB conditions for the basic commercial grades. The last reference price was $450/mt to $460/mt and $405/mt to $410/mt, respectively.
In January, Brazil exported 699,000 mt of slab, in average at $492/mt, FOB conditions. The main destination was the US (390,700 mt at $502/mt), followed by Italy (134,800 mt at $473/mt), Germany (62,800 mt at $480/mt), Belgium (50,600 mt at $469/mt) and Canada (37,800 mt at $539/mt), all FOB conditions. The exporters were Pecem (283,900 mt), ArcelorMittal Tubarao (217,100 mt), Ternium (177,900 mt) and CSN (20,100 mt).