According to sources, the reference price for the export of slabs from Brazil is $520/mt, comparable to $525/mt on July 30, FOB conditions for the basic commercial grades, for shipments in October.
At least one such deal was effectively closed at $520/mt.
The average production costs for slabs in Brazil, including the Pecem, Tubarão and Ouro Branco plants, is estimated by analysts at $500/mt which reaffirms that the current FOB price is threatening margins, although the Brazilian producers could benefit from higher HRC prices in the US during this week’s round of negotiations.
Preliminary numbers remain pointing to Brazilian slabs exports in July far higher than the 413,400 mt in June, while the country’s imports of the product have reportedly reached 174,000 mt, against 76,700 mt in June.