A steel trader in Rio de Janeiro told SteelOrbis that he has not been able to close new export deals for wire rod over the last few months due to conditions likely affecting other traders as well.
He mentioned that he has a portfolio of clients in African countries, but he cannot be competitive under the current price difference between Brazil and the international markets.
“The Brazilian producers offer me the mesh grade product in a range of $420/mt to $450/mt, ex-works conditions, while my African clients say that they are able to import the product, CFR conditions, at $350/mt”, he said, adding that he is at least $100/mt far from achieving a small margin in such a export.
According to the source, the country’s exports of wire rod in August, at an average FOB price of $473/mt, FOB conditions, probably closed in June, were most likely traded among the local producers and their subsidiaries abroad, under prices not necessarily linked to market conditions.
Another source, linked to a Brazilian producer, informed that since early July the FOB export price of the mesh grade product is $524/mt FOB.