A source from a Brazilian exporter told SteelOrbis that a 10 percent price increase is confirmed for wire rod exports, effective from March 1.
With the increase, the price of the mesh grade product should reach $638/mt, while for the drawing grade product it will reach $660/mt, both FOB conditions.
The source mentioned that the increase is part of a strategy that takes into consideration the alternative for selling domestically at higher prices, despite a possible reduction in volume of fresh export deals.
In January, Brazilian exports of wire rod increased by 2.1 percent from December to 38,200 mt. The price of mesh grade exports averaged at $400/mt, with drawing grade exports averaging at $580/mt, both FOB conditions.
The main destinations for Brazilian wire rod exports in January were South America (22,300 mt at an average price—including both grades—of $421/mt), the EU (10,500 mt at an average of $357/mt), the Caribbean (2,400 mt at an average of $425/mt) and the US (2,300 mt at an average of $580/mt), all FOB conditions.
The exporters were Gerdau (30,700 mt), ArcelorMittal (6,400 mt) and the Votorantim Group (800 mt).