A source linked to a longs producer in Brazil told SteelOrbis that despite the recently announced 8 percent price increase, wire rod exports are not attractive when compared with domestic sales.
“Our production is totally earmarked to the domestic market, and even if we had a surplus, we would need a price of more than $550/mt, FOB conditions, to justify exports of mesh grade wire rod,” he said.
According to other source, also from a Brazilian producer, $524/mt FOB is the new reference price for the export of the mesh grade wire rod.
Wire rod of the mesh grade was exported from Brazil in June in average at $382/mt, FOB conditions, in price deals probably closed in April.
In the Brazilian domestic market, the price of the product is estimated at the equivalent to $685/mt, FOB, no taxes included.