Brazilian Slab Prices in August: Impact of US Tariffs and Market Trends

Brazilian Slab Prices Steady Amid US Tariffs and Market Challenges

Brazilian slab prices remained steady at $470 per tonne FOB in August despite a complex mix of market forces. The US imposed a 50% tariff on Brazilian steel slabs and finished products under Section 232, reducing demand from a key export market. This tariff increase made slabs from other countries more competitive for American buyers. Meanwhile, Brazil’s steel sector reported a 10% year-on-year decline in semi-finished product output through mid-2025, highlighting operational challenges exacerbated by tariffs and global competition from cheaper Asian imports.

Regional Slab Market Trends and Price Fluctuations

Price trends in other regional slab markets varied in August. Black Sea slab prices rose 2% to $430/ton driven by increased imports into Turkey, with Russian slabs accounting for 56% of imports. The EU’s import quota for Russian slabs nears exhaustion, adding uncertainty to supply. Meanwhile, Asian slab prices stabilized after recent declines amid weak Chinese demand and competition from Russian products. Japan’s slab prices fell slightly to $460/ton, and China’s hot-rolled coil prices dipped $5 to $490/ton, reflecting subdued demand and mixed economic signals in the region.

SuperMetalPrice Commentary:

The Brazilian steel sector faces mounting pressure due to US tariff policies and rising global competition. The steady slab price at $470/ton masks deeper challenges, including declining production and lost market share in the US. Regional market dynamics reflect ongoing geopolitical and economic shifts, especially with EU quota limits and Chinese demand fluctuations. Looking ahead, Brazilian producers must diversify markets and improve cost competitiveness to sustain exports. Tracking tariff changes and regional demand remains critical for stakeholders in global slab and steel pricing.