A source from a major steel producer in Brazil told SteelOrbis that the base price for slab export negotiations is currently $240/mt, FOB conditions, for the basic commercial grades.
The price compares with $250/mt FOB earlier this month and follows a consistent downward trend since a peak of $530/mt FOB achieved on July 2014.
The price compares with $250/mt FOB earlier this month and follows a consistent downward trend since a peak of $530/mt FOB achieved on July 2014.
The source mentioned that a period of price stability, or even a small increase, is expected in the next weeks, due to the stoppage of slab production at Usiminas' Cubatao plant, scheduled for January 2015.
“With the reduction of the production and the stability of the demand, the price must show a positive reaction,” he said, but warned that the stoppage of crude steel production at Cubatao is facing strong pressure from the workers union and from municipal authorities in Cubatao, where it is the main source of taxes.
In October, Usiminas did not export slabs while ArcelorMittal Tubarao exported 241,600 mt, ThyssenKrupp CSA 150,300 mt and Gerdau Acominas 64,900 mt.