With confirmation that Brazilian steel producer Companhia Siderurgica do Pecem’s blast furnace will undergo a short period of stoppage for maintenance, coupled with indications of technical problems reducing production in at least one other slab producer, prices in the Brazilian merchant slab market are expected to maintain their current high levels or even increase in the short to medium term.
Brazilian slab export offers are now priced for exports to the US at $795/mt for the East coast compared to $780/mt last week, while to the West coast the reference price now is $790/mt, compared to $785/mt last week, both CFR conditions for the basic commercial grades.
A local source mentioned that other factors are also supporting strong slab prices, such as steel prices recovering in China, increasing iron ore prices, and a possible change in tax rebates on Chinese exports.