Brazilian merchant steel slab prices have drifted down for July-August shipments due to the seasonal slowdown in the main consuming markets.
S&P Global Platts on Monday reduced its monthly assessment of Brazilian slab by $22.50/mt to $382.50/mt FOB Brazilian ports for July shipments, based on a new lower range at $375-$390/mt for bids, offers and deals.
"This is an ungrateful time to sell steel slabs overseas, as historically this is a period of lower demand in Europe, with the restocking starting only in August," said a producer source, who is offering the material at $380-$395/mt FOB, depending on the destination.
Another producer cited the "good price" to be around $390/mt, although recognizing that bids were coming much lower than this.
One trader agreed with reduced offers due to weak demand and fierce competition, indicating a tradeable value of $388/mt FOB.
"We are seeing more Brazilian slab on other markets," a European trader said, citing CIS prices that have slipped in the past week, strengthening the competition in the market.
Offers of Brazil-origin material to Mexico have ranged from $380-$390/mt FOB, compared with $390-$395/mt to the US and $370-$380/mt to Europe, according to the latest Platts survey.
"Import prices for slab in Asia have slipped below $400/mt CFR, with market sentiment remaining bearish among buyers," another trader said.
Nevertheless, some sources cited increasing prices of Turkish HMS 1:2 scrap that may open the opportunity for a tradeoff: "When the scrap gets expensive, Turkish companies opt for steel slabs instead," a producer source said. "This may spur steel slabs demand, thus prices."
