Sources tell SteelOrbis that there is a wide margin between slab offers by producers and acceptable prices by their clients; the difference reportedly ranges from $50/mt to $60/mt, for shipments in January 2022.
One of the exporters has entered in negotiations with clients in the US, Mexico and in the Brazilian domestic market, sources say, without agreements in sight at least for the short term. However, there are indications that one exporter has closed a deal with an associated company abroad, without reference to price conditions.
The “wait-and-see” strategy that was adopted by slab producers in the hope that their sales to China could strength their bargaining position, is now being adopted by consumers, in the hope that reduced slab prices in other world regions will put pressure on prices in Brazil.
So far, expectations by exporters remain in the $760/mt to $770/mt for sales to the US and $740/mt to other destinations, FOB conditions, for January shipments.
Preliminary numbers from customs remain pointing to an increase in November from the 419,100 mt of slab exported from Brazil in October.