Brazil exported 20,800 mt of wire rod in December, 50 percent more than in November, reflecting chiefly exports to the US increased by 234 percent to 15,000 mt, while exports to South American countries declined by 54 percent to 3,200 mt.
Smaller tonnages were shipped to the Caribbean (2,000 mt) and to Asia (500 mt), compared to no exports in November, according to the country’s ministry of development, industry and foreign trade, MDIC.
The average FOB price, $470/mt, 9.4 percent higher than in November, points to the mesh grade product exported at $376/mt, while the drawing grade product was exported at $496/mt, both FOB conditions.
The main exporters were ArcelorMittal (17,200 mt at $494/mt FOB) and Gerdau (3,500 mt at $356/mt FOB).
Reflecting the devaluation of the BRL vis-à-vis the US Dollar, coupled to the reduced domestic demand, the Brazilian exports of wire rod increased over 2015 by 34 percent from 2014 to 290,400 mt, while the country’s imports of the product declined during the year by 63 percent to 43,000 mt, achieving non-relevant volumes over the last months of the year.
A major distributor in Rio de Janeiro told SteelOrbis that he is selling the mesh grade wire rod at BRL 3,004/mt ($732/mt) and the drawing grade product at BRL 3,359/mt ($818/mt), both CFR, full taxes conditions, prices stable since early December 2015.
1 USD = BRL 4.10 (January 20)