A source from a major steelmaker in Brazil told SteelOrbis that the current basis for price negotiations of slabs, for export, is based on $300/mt FOB for the basic commercial grades.
According to the source, the decline from $310/mt FOB, the reference price of three weeks ago, reflects that the market is getting worse.
“The international demand continues to decline while the offer is stable, so the price has to decline,” he said, adding that he believes that at such price level, only ArcelorMittal Tubarao and ThyssenKrupp CSA will remain in the merchant slab market, due to their links with associated companies abroad.
In May, ThyssenKrupp CSA exported 247,700 mt of slabs at $370/mt FOB, while Tubarao exported 215,300 mt at $330/mt FOB.
Usiminas, CSN and Gerdau Acominas did not export slabs in May.