Brazil export-oriented slab prices increased $50 on the week ended March 25, as the US customers resumed purchases for June shipments, said sources.
The Platts weekly Brazilian steel slab price was assessed higher at $1,200/mt FOB Brazilian ports based on a range of $1,190/mt-$1,210/mt FOB, according to data from S&P Global Commodities Insights.
At least three deals to the US were reported by both sell and buy sides, all of them hovering around $1,200/mt FOB. A sell side source said that the rate was a deal price from early in the week and that prices had already moved, pinning offers levels at $1,300/mt FOB to the US and $1,250/mt FOB to Europe and Americas ex-US. However, no deals were closed at these levels.
A second sell side source also reported a deal above $1,200/mt FOB, without specifying the details. A buy side source confirmed the $1,200/mt FOB price had traded.
Should the US resumed purchases, Brazilian sellers may face fierce competition in Europe against Chinese goods. Sources also said that Chinese slab presence in Europe was increasing.
S&P Global reported that a mill source concluded some slab sales to Europe at around $1,000/mt CFR March 22.
“China is not preventing exports, as the Chinese domestic demand has been weak due to the COVID-19,” a market participant said. A second market participant reported a deal at a large volume from a Chinese mill to a European customer.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.