A source from a major slab producer in Brazil told SteelOrbis that $230/mt, FOB conditions, remains the base price for negotiations for the export of the product of the basic commercial grades.
“Historically it is a very low price, but we are happy that it did not go down in more than one month,” he said, adding that he believes that the stability reflects the perspectives when the Cubatao plant of Usiminas will stop its 4 million mt crude steel production capacity in January, maintaining only rolling operations.
Other sources mentioned that slab producers could be avoiding fresh deals with prices under $230/mt FOB, in the hope to negotiate the supply to Usiminas, should the current negotiations between Usiminas and ThyssenKrupp CSA not reach a deal on prices.
Brazilian slab prices for export are in a consistent downtrend since a peak of $530/mt FOB was achieved in July 2014, with a short period of stability between April and July 2015.
In November, CSA exported its slabs in average at $282/mt, ArcelorMittal Tubarao at $245/mt and Gerdau Acominas at $267/mt, all FOB conditions.