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Brazilian Slab Deals Yet To Shape Up For Q4 Shipments To North America
Deals have yet to shape up in slab exports out of Brazil to North America for shipments in the October-December quarter of 2006, according to information available in Tokyo. Brazilian integrated steelmakers have continued their negotiations with local customers for nearly one month since the negotiations started. But no firm deal is reported so far.

As a result, Japan's steel industry sources are concerned about whether the Brazilian steelmakers face a tough process of their talks.

The Brazilian steelmakers are reported to have offered flat prices of US$520-530/ton FOB this time in the judgment that a price increase is difficult. They are described as fairly bullish in their deals under negotiations despite forecasts that they will agree to a certain price reduction at the final stage.

On the contrary, the users show strong resistance to the prices on offer from the Brazilian steelmakers, according to market sources. The users may struggling to avoid purchases at the offered prices as much as possible for fear of Arcelor Mittal's price control on the world's slab supplies. Arcelor Mittal owns slab production facilities in the world's various nations such as Brazil and Mexico.

Meanwhile, Australia's steelmakers are reported to have offered a price reduction of US$20-30/ton in their slab exports for Q4 shipments. Also, it is understood that slab exports out of Russian are on offer at around US$450/ton FOB for Q4 shipments.
last modified : Thu 28 Sep, 2006 [10:48]
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