According to sources, the reference price for the exports of slabs from Brazil is now $530/mt, FOB conditions for the basic commercial grades.
At least one deal was effectively closed at such price level which compares to $540/mt one week ago.
Analysts believe that such price is not sustainable in the short term, as this week’s increases for the prices of steel raw materials, chiefly iron ore, have reduced the already squeezed margins for the Brazilian slab producers.
In September, the Brazilian exports and imports of slabs are expected to decline from the 465,800 mt exported and 144,300 mt imported in August.