After concluding sales for shipments in November and December, Brazilian slab producers are expecting to start negotiations for January 2022 shipments next week.
The last deals were closed, FOB terms, around $750/mt for exports to the US and around $710/mt for sales to other destinations, including the Brazilian domestic market, where demand is higher due to increased activity in some industrial sectors, while supply is reduced due to the stoppage for repairs and maintenance of blast furnaces at Pecem and at the Ipatinga plant of Usiminas.
Sources mentioned that the exporters have not decided so far about price levels for the upcoming negotiations, but expectations are based on the level of the last deals closed, or even higher, considering the temporary shortage of material in Brazil and the price of slab in different world regions.
Preliminary numbers remain pointing to a decline in October from the 596,100 mt of slab exported from Brazil in September.