A number of slab sellers have tried to raise prices substantially for January/February shipments, but actual transacted ranges have shown only a minor uptick. US mills noted that many slab sellers, particularly in Brazil and Mexico, tried to get a major increase from December to January/February shipments. Mexico offered slab at approximately $480/mt FOB for both January and February, but received few takers. Meanwhile, one slab seller in Brazil offered $500/mt FOB to the US market but had no success, especially given lower offers available from other Brazilian producers.
US domestic re-rollers aimed to secure January/February slabs at prices below $470/mt CFR and were successful. In early December, mills were able to secure slabs out of Brazil for about $455/mt CFR for January shipment, similar to prices for December shipments; but in the last week, the lowest prices for Brazilian slabs booked were about $465/mt CFR. Meanwhile, re-rollers booked slabs out of Japan for January at $465/mt and about $5/mt higher for February. Domestic mills are hesitant to pay any further increases on slabs given ongoing uncertainty over domestic flat rolled spot prices. However, if flats prices strengthen early in the New Year, it is anticipated that slab sellers will be firmer about attaining higher prices as well.