According to sources, the reference price for the export of slabs from Brazil is stable over the last two weeks at $525/mt, FOB conditions for the basic commercial grades, for shipments in October.
The permanence of the reference price is in line with comments by producers that such a price is close to their production costs, negatively affecting their margins.
According to analysts, the low slab prices ultimately reflect declining HRC prices in the US, although some players believe that such HRC prices should increase in the short term, giving support to slabs prices.
In June, Brazil exported 413,400 mt and imported 76,700 mt of the product.
Preliminary numbers are pointing to a far higher volume of slabs exported from Brazil in July, while so far this month, four cargoes of the product have cleared customs in Brazilian ports: 35,000 mt at $516/mt, 45,000 mt at $508/mt, 40,000 mt at $514/mt, and 54,000 mt at $523/mt, FOB conditions.