Export prices for Brazil-origin slab remained stable for a second consecutive week on Friday July 19, with raw materials costs still high and deals sparse amid weak demand.
Fastmarkets' weekly price assessment for steel slab export, fob main port Brazil, $/tonne, was $420-430 on Friday July 19, unchanged from the previous week.
Offers for Brazilian slab remained at $420-430 per tonne fob, but few deals have been reported.
Buyers in Europe and Asia have been waiting on the sidelines to see if prices fall below $420 per tonne fob, but producers were not able to accept bids lower than this level.
The continued high cost of iron ore is limiting the producers' ability to reduce prices.
The daily Fastmarkets index for iron ore 62% Fe fines, cfr Qingdao was $121.79 per tonne on Friday, up from $119.29 per tonne on July 12.
"To sell slab at current prices would only be profitable if iron ore prices were at around $70 per tonne [cfr Qingdao]," a source said.
"Depending on freight, $420 or $425 [per tonne fob] is the lowest level producers will accept," another source said.
Rumors that Asian countries, including China, were searching for Brazilian slab were circulating in the market, but the price is not viable, according to market participants.
Brazilian producers were no longer able to book volumes to the United States, as the annual quota of 3.50 million tonnes of semi-finished products is close to its limit.
source: fastmarkets MB |
