Brazil exported 48,600 mt of wire rod in September, 132 percent more than in August, reaching to the highest monthly volume in recent years, according to the country’s ministry of development, industry and foreign trade, MDIC.
Analysts ascribe the upswing to a favorable exchange rate, increasing in relative terms the competitiveness of the local production due to the devaluation of the BRL next to the $.
The average FOB average price decreased from August by 15 percent to $460/mt, pointing to the mesh grade product exported at $379/mt and the drawing grade product exported at $525/mt.
The top exporter was Gerdau, which shipped 25,500 mt in September against 3,400 mt in August, while ArcelorMittal exported 23,100 mt, a 31.6 percent increase from August.
The US was the top destination, doubled from August to 21,200 mt, followed by the EU and Latin America (13,000 mt each), while small tonnages were shipped to Canada and Asia.
In the Brazilian domestic market, a major producer told SteelOrbis that the mesh grade product remains sold at BRL2,889/mt ($741/mt) and the drawing grade product at BRL3,230/mt ($829/mt), both CFR, full taxes conditions, stable in BRL over three months, despite expectations for October of a small increase, still under consideration, to compensate for part of the production costs incurred in USD.
USD = BRL 3.89 (October 19)