It is reported that offer prices are estimated at a level of USD 350 per tonne FOB in Brazilian and Australian integrated steelmakers" slab export negotiations under way on shipments to Asia in the January to March 2009 quarter. As a result, the prices on offer this time are viewed as close to half the final level of agreed prices in Brazilian and Australian slab exports to Asia for October to December 2008 shipments.

As of September 2008, Brazilian and Australian prices of slab exports to Asia were reported as a level of USD 1,050 per tonne FOB. They were said to be a level of USD 850 per tonne FOB at first for October to December 2008 shipments, down by USD 200 from a quarter ago. Then, the Brazilian and Australian steelmakers were believed to have renegotiated their supply contracts with a price reduction of USD 100 or USD 200 in the wake of a South Korean customer"s request for a review of prices.

Meanwhile, Asian customers look set to reject the slab prices on offer from the Brazilian and Australian steelmakers for January to March 2009 shipments. It is understood that the customers have little leeway for new slab imports because they have imported slabs in stock in large quantities, slabs bought at high prices.