A source from a major slab producer told SteelOrbis that the base price for negotiation of slabs of the basic commercial grades for export is now $240/mt, FOB conditions, against $230/mt earlier this month.
The source mentioned that although small, the increase is being celebrated by local steelmakers, as it is the first increase in almost two years, following a peak price of $526/mt FOB achieved in July 2014.
According to the source, the slab market started trending up as a reflection of the increased price of HRC in China, with more increases expected for the next few months, but conceded that the absence of Usiminas from the merchant slab market has also played a role, due to the reduced offers.
With the closure of crude steel production at its Cubatao plant, Usiminas is not exporting slab and is reportedly buying the product from ThyssenKrupp CSA. As CSN does not export slab under a base marketing policy, only CSA, ArcelorMittal Tubarao and Gerdau Acominas are exporting slab from Brazil.
In January, Brazil exported 393,000 mt of slabs at $240/mt FOB in average, against 694,000 mt at $253/mt in December.