Brazilian export-oriented slab prices rose $7.50/mt on the week ending May 28, with suppliers making their highest offers at $1,000/mt FOB to the US for August shipments.
S&P Global Platts assessed Brazilian steel slab prices at $972.50/mt FOB Brazilian ports, based on a range of $965-$980/mt FOB. Last week prices were at $950-$980/mt FOB.
“Demand is so high with hot-rolled coil prices going up, futures market going up and a hard quota with volume available. We continue to give priority to the US,” said a producer source. “We started this week offering to the US at $1,000/mt FOB.”
Another source confirmed a tradable value of $980/mt FOB. “But, there have been no deals above that yet… I haven’t heard anything concrete about $1,000/mt FOB yet. This value is just a target that market participants want to reach,” the source added.
A third source said current values are nearing those seen in the 2008 financial crisis, citing inflated finished steel prices in the US contributing to the slab price climb.
According to a supplier, offers to other regions would be at $970-$980/mt FOB. “But as a second option,” he added.
— Priscilla Antunes