Exports of wire rod by Brazilian producers declined by 48 percent to 6,700 mt in August, the lowest monthly volume since August 2012, according to the country’s ministry of development, industry and foreign trade, MDIC.
But the average FOB export price was slightly increased to $654/mt, pointing to the mesh grade product exported at $641/mt, while the drawing grade was sold in a range of $699/mt to $760/mt.
The reduced volume reflects exports to the US zeroed in August, against 8,000 mt shipped to the country in July, reportedly due to competition from Chinese product.
Conversely, exports to South America went up by 54 percent to 4,400 mt, while exports to Asia went up by 22 percent to 2,400 mt.
A major exporter told SteelOrbis that with the mesh grade product sold by Chinese producers for less than $450/mt FOB, the Brazilian producers have lost competitiveness in the international markets, ascribing preference to the domestic market, which in spite of the reduced demand, has maintained prices in a range equivalent to $700-$800/mt FOB.