Brazilian Slab Prices Drop 2.5% in July Amid US Tariff Pressures

US Tariffs Pressure Brazilian Slab Exports

Brazilian slab prices declined 2.5% in July, dropping to $470/t FOB, down from $482/t in June. The price slump reflects ongoing weak global demand for rolled products and rising concerns about US trade measures. Starting August 7, the US will enforce a cumulative 50% duty on Brazilian goods, further compounding challenges for Brazilian steelmakers.

Brazil’s steel exports face double pressure as Section 232 tariffs already impose a 50% duty on semi-finished and finished steel. This new round of tariffs could raise total duties on Brazilian steel to 100%, undermining Brazil’s key trade relationship with US buyers. Brazil shipped 2.7 million tonnes of slabs to the US in H1 2025, down from 4.3 million tonnes in 2024.

Despite this, Brazil’s steel sector showed slight recovery in June. Steel output reached 2.8 million tonnes, up 4.8% from May but 0.5% below last year. Semi-finished production also rose 6.6% month-over-month, with 693,000 tonnes of slabs produced out of 730,000 tonnes total.

Slab Prices Vary Globally Amid Trade Shifts

While Brazilian slabs weakened, other markets showed mixed trends. FOB Black Sea slab prices rose by 2% in July to $422.5/t, reflecting increased regional activity. Turkey’s slab imports surged 40% year-on-year in June to 351,400 tonnes, led by Russian supply.

Russian slabs made up 55% of Turkey’s imports, hitting 191,800 tonnes in June—up 55% y/y, but down 26.7% from April. Russian slab prices averaged $476/t, close to those from Algeria and Malaysia at $478/t. These figures suggest that Turkey is diversifying sources while still relying heavily on Russian material.

In Asia, slab prices remain stable at $470/t FOB, especially in Japan, where the market has held steady since April. However, Asian suppliers have boosted output in recent weeks, despite continued weak demand across the region. This could place downward pressure on prices in the near term.

SuperMetalPrice Commentary:

The 2.5% price drop in Brazilian slabs underscores the growing strain from global trade friction and excess supply. The impending 100% tariff wall between Brazil and the US could realign trade flows and benefit alternative suppliers in Turkey and Asia. Brazilian producers now face a difficult balancing act—boosting domestic resilience while searching for new export markets. Watch for shifts in slab trade dynamics as protectionist policies reshape global steel flows.