Brazilian exports of wire rod reached 42,400 mt in July, against a monthly average of 24,200 mt in 2015, reflecting chiefly the search for alternative markets by the local producers, severely hit by the reduced domestic demand.
Latin America (excluding Caribbean countries) was the main destination (14,700 mt), followed by the EU (13,100 mt), regions which reflect increased volumes for Brazilian wire rod when compared with the reduced volumes during the first months of 2016.
The shipments to the US have maintained a relative stability over the year, around 7,500 mt per month in average, while shipments to countries in the Caribbean, which reached 7,400 mt in July, are following an unstable pattern with highs and lows from month to month.
Brazilian exports of wire rod in July were closed FOB, probably in May, at $423/mt for the mesh grade and at $452/mt for the drawing grade.
Following an 8 percent price increase in early July, wire rod mesh remains exported at $524/mt, while the drawing grade product is exported at $540/mt, both FOB conditions, a major exporter told SteelOrbis, adding that such prices should be stable at least until October.