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| Brazilian slab prices |
U.S. Tariffs and Sluggish Demand Weigh on Brazilian Slab Exports
Brazilian slab prices in August remained flat at $470 per tonne (FOB), reflecting a market under persistent pressure from weak demand and U.S. protectionist measures. As SteelOrbis reported, export prices held steady despite declining production and capacity utilization in Brazil. Meanwhile, the U.S. imposed an additional 50% tariff on Brazilian goods on August 7, exacerbating concerns for Brazil’s steelmakers. The country had already faced Section 232 tariffs on semi-finished and finished steel, limiting its competitiveness in the U.S. market.
Brazilian Output Down as Tariffs Disrupt Export Outlook
Brazil’s semi-finished steel production dropped 0.4% in July, reaching 727,000 tons, with slabs comprising 689,000 tons. Year-to-date output declined 10% year-on-year to 4.7 million tons, largely due to reduced exports and global overcapacity. The U.S. remains Brazil’s top export market for slabs, purchasing 2.7 million tons in H1 2025. However, the tariff hike is likely to reduce future shipment volumes. In contrast, imports surged in June to 353,700 tons, suggesting U.S. buyers accelerated orders ahead of the new duties.
Meanwhile, Brazil’s steel sector is increasingly squeezed between lost market share in the U.S. and rising competition from low-cost Asian slab producers. As a result, Brazilian suppliers may seek new markets, but pricing leverage remains limited due to the broader weakness in global rolled product demand.
Global Slab Market Sees Mixed Trends Amid Quotas and Currency Risk
In contrast, Turkish slab imports rose 5.3% y/y to 2 million tons, with Russian slabs accounting for 56% of this volume. The FOB Black Sea slab price climbed 2% to $430/t by mid-August, showing some resilience. However, the EU’s import quota for Russian slabs neared exhaustion, with only 27,000 tons left out of 3.2 million tons as of August 15. A new quota cycle starts October 1, capped at 3 million tons annually.
Meanwhile, Asian slab prices remained under pressure, with Japan’s average price falling $10 to $460/t. Exporters failed to raise prices due to weak Chinese demand and stiff competition from Russian material. In tandem, HRC benchmark prices dropped to $490/t FOB China, mirroring stagnation in downstream sectors.
Therefore, despite short-term price stability in Brazil, global slab market dynamics—including tariffs, quotas, and soft downstream demand—continue to limit upside for suppliers across all regions.
ScrapInsight Commentary
The stability in Brazilian slab prices masks deeper structural issues caused by tariff-driven market distortion and soft global demand. U.S. tariffs may permanently shift trade flows, while regional quotas and oversupply pressure prices in Asia and Europe. Producers should anticipate continued volatility and consider diversification toward lower-risk export destinations.
