Brazil exported 31,500 mt of wire rod in June, 70 percent more than in May, according to the country’s ministry of development, industry and foreign trade, MDIC.
The average FOB price, 16.5 percent lower at $506/mt, points to the mesh grade product exported at $448/mt, while the drawing grade was exported at $550/mt.
Exports by Gerdau reached 14,100mt, while export by ArcelorMittal reached 17,400 mt, without the indication of exports by the Votorantim Group or by independent traders.
According to sources, the increased volume exported reflects a combination of factors that include the reduced domestic demand, generating excess supply, and the devaluation of the BRL, improving the competitiveness of the local production in $ terms.
The main destinations of the Brazilian wire rod in June were South American countries (17,500 mt), the US (9,000 mt) and the EU (3,500 mt).
Meanwhile, Brazil imported 2,700 mt of wire rod in June, 43 percent less than in May, at an average FOB price increased by 21 percent to $713/mt, almost entirely of the drawing grade product.
In the domestic market, perspectives of a price reduction did not come in force so far, so the price of the mesh grade product remains at BRL3,188/mt ($1,007/mt), while the price of the drawing grade product remains at BRL3,222/mt ($1,018/mt), both CFR, full taxes conditions.
1 US$ = BRL 3.13 (July 13)