A source from a major exporter in Brazil told SteelOrbis that he is negotiating wire rod prices at $510/mt FOB, against an average of $500/mt FOB 10 days ago.
“We were dealing in a range of $490/mt to $510/mt, but now we are in the upper side of the range,” he said, referring to exports to the US for the drawing grade product (FOB conditions).
The source mentioned that volumes, rather than prices, are the main target for exports of wire rod to the US, under their current market strategy, adding that the higher prices derive from increased demand in the US, coupled to reduced production in Brazil.
A second source mentioned that the production of wire rod and rebar in Brazil is benefiting from lower prices for ferrous scrap in the domestic market.
In February, Brazilian companies exported the drawing grade wire rod to the US in average at $493/mt, FOB conditions, price deals probably closed in December 2015.