According to sources, the reference price for the exports of slabs from Brazil is $530/mt, FOB conditions for the basic commercial grades.
At least one deal was effectively closed at such price level, stable from one week ago.
According to analysts, such price is narrowing the margins of the producers, as the Pecem, Ternium, and Tubarão plants have production costs slightly lower than $500/mt, but such figure is expected to increase in the short term, to include the recent increase of iron ore prices among other steel raw materials.
In September, the Brazilian exports and imports of slabs have probably declined from the 465,800 mt exported and 144,300 mt imported in August.