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| Brazilian slab prices |
US Tariff Policies Weigh on Brazilian Slab Exports and Prices
Brazilian slab prices fell by 2.5% in July, driven primarily by weak demand and escalating US tariff measures. The average export price dropped to $470 per ton FOB, down from $482 in June. Starting August 7, the US will impose a cumulative 50% tariff on Brazilian steel goods, intensifying pressure on Brazil’s slab exports. Consequently, this tariff hike threatens Brazil’s steel sector due to its heavy reliance on the US market.
Production Trends and Regional Market Dynamics
Brazil’s steel production showed slight improvement with a 4.8% increase in June compared to May, reaching 2.8 million tons. Semi-finished product output rose 6.6%, with slabs accounting for 693,000 tons. Meanwhile, Black Sea slab prices rose 2% to $422.5 per ton amid active market demand. Turkey notably boosted slab imports by 40% year-over-year, sourcing primarily from Russia, although Russian imports declined 26.7% since April.
Asian Market Stability Despite Oversupply Risks
In Asia, slab prices stabilized around $470 per ton FOB in Japan since April, despite recent supply increases. Asian suppliers continue to ramp up shipments amid subdued demand, posing potential oversupply risks. The combination of global tariff barriers and regional supply fluctuations complicates slab market dynamics moving forward.
ScrapInsight Commentary
US tariff escalation significantly disrupts Brazilian slab exports, likely pressuring prices further. Although Brazil’s production shows short-term resilience, the tariff environment compels producers to seek alternative markets. These developments underscore tariff impacts on global steel trade and the evolving challenges for scrap and semi-finished metal flows in the circular economy.
