According to sources, the reference price for the exports of slabs from Brazil is stable since August 21 at $530/mt, FOB conditions for the basic commercial grades.
This price remains as the reference for the ongoing deals related to shipments in November.
According to the Brazilian slabs producers, this price remains very close to their production costs, estimated at $500/mt, resulting in low margins, not sustainable in the long term.
According to analysts, this price could increase in the coming weeks.
For August both the country’s exports and imports of slabs are expected to decline from 954,600 mt and 185,400 mt, respectively, exported in July.
In line with the reduction of imports of steel products, due to the system of quotas approved by the local authorities, the Brazilian slabs exports are expected to decline during the fourth quarter of the year reflecting increased domestic demand for slabs to feed the local rolling activities that will replace the reduced imports of HRC, CRC, and coated flat products.