Despite the recent reduction of steel prices in the international market, an 8 percent increase in wire rod prices is expected to be maintained for June, a source from a major Brazilian exporter told SteelOrbis.
“We were not informed of a different decision on the previously announced increase,” the source said, adding that in his view steel prices are showing signs of volatility, rather than a downward trend.
With the increase, wire rod of the mesh grade should be exported at $524/mt, FOB conditions as of June 1.
In April, Brazilian exports of wire rod, almost entirely of the mesh grade, were chiefly destined to Latin American and EU countries, at an average price of $394/mt, FOB conditions, price deals probably closed in February.
Exports of the mesh grade product by Gerdau were priced at $379/mt, while those by ArcelorMittal were priced at $391/mt, both FOB conditions.
Positively affecting the average price of April, small shipments of the drawing grade product were priced in a range of $586/mt to $637/mt, also FOB conditions.