Brazilian wire rod export prices expected to maintain long-term stability

A source from a major Brazilian longs producer told SteelOrbis that after the 8 percent increase in July, the company is not considering additional price changes, at least until October.

According to the source, wire rod mesh remains sold for export at $524/mt, while the drawing grade product is exported at $540/mt, both FOB conditions.

The source mentioned that such exports are considered as “last resort” operations, as in the domestic market the price is equivalent to $709/mt FOB, no taxes included for the mesh grade and $793/mt for the drawing grade.

In July, Brazil exported 42,400 mt of wire rod at an average FOB price of $434/mt, pointing to the mesh grade exported at $423/mt and the drawing grade exported at $452/mt, price deals probably closed in May.