Tel : 0086-0371-86172891
Tel : 0086-0371-86172891
Recently, due to the strengthening of hot coil prices in the United States, the fluctuation of iron ore prices, and some transportation restrictions caused by geopolitical issues in the Middle East, Brazil's slab quotation has been slightly increased. The current DD12 steel quotation is about 615-630 USD/ton FOB, which is a narrow increase from last week's quotation of about 610-630 USD/ton FOB. In addition, we also understand that the current international market situation may affect the transportation and production of Brazilian slabs, thereby further pushing up the price of Brazilian slabs.
Specifically, in terms of transportation, some market participants have expressed that the current geopolitical issues may lead to an increase in oil prices, hindering the transportation of goods and increasing the overall transportation cost of steel. In addition, we have learned that in March 2024, a fire accident occurred at a steel plant in AncelorMittal DD12 steel Brazil, which had a certain impact on its production capacity. Although AncelorMittal is working hard to minimize the impact, its production of steel billets will be reduced to a certain extent. In addition, ArcelorMittal also stated that in March 2024, a fire accident occurred in an electric furnace in western Mexico, and the Mexican steel plant mainly supplied slabs to ArcelorMittal's Calvert steel plant (AM/NS Calvert) in the United States. In the situation where the production capacity of Mexican steel mills was damaged, Brazilian steel mills had to transfer some of their production capacity to make up for the existing supply of Mexican steel mills and produce the products required by Calvert steel mills in the United States, thereby reducing the local slab production capacity of Brazilian steel mills to some extent. In the current situation, we expect that there is still some room for price increases in Brazilian DD12 steel slab prices in the future, and we will continue to monitor.
