Brazilian slab export deals for shipments to the US are being closed in a price range of $470/mt to $480/mt, FOB conditions for the basic commercial grades, a price stable from last week. Offers to the US East coast are estimated at $490/mt to $500/mt CFR conditions, while offers to the US West coast are at $500/mt to $510/mt CFR.
Sources tell SteelOrbis that the current offers are still included in the second quarter 2020 quota for US Section 232, although shipments to fulfill the quota are expected to be concluded in March.
For export slab shipments to Europe, the reference price is also stable, in a range of $430/mt to $440/mt, FOB conditions for the basic commercial grades.
Sources say the problems in China derived from the Convid-19 outbreak have not resulted so far in cancelation of orders or pressures in relation to steel prices, although players remain apprehensive about developments in the short term.
In January, Brazil exported 682,700 mt of slab, against 510,000 mt in December. Preliminary indications from customs are pointing to another increase in February from the volume of slab exported in January, reflecting chiefly increased demand from the US.