A major distributor in Rio de Janeiro told SteelOrbis that it was informed by a long steel producer that an 8 percent increase, previously announced to be implemented in May, is now effective only to distributors, being postponed for June to end users in the domestic and export markets.
The source was told that the postponement, in the case of domestic end users, was decided on grounds that it would negatively affect the volume of sales, already reduced due to the lackluster performance of the Brazilian economy.
In the case of exports, he was told that the recent valuation of the Brazilian Real, vis-à-vis the American Dollar, could reduce the competitiveness of country’s exports if coupled to a price increase.
With the decision, wire rod mesh is sold in the domestic market at the equivalent to $643/mt, while the drawing grade product is sold at $719/mt, FOB conditions.
For export, the price remains at $485/mt at $500/mt, respectively, also FOB conditions.