A source from a major distributor in Brazil told SteelOrbis that Gerdau and ArcelorMittal are increasing the prices for their long products by 8 percent, effective from July 1, confirming market rumors that circulated over the next days.
According to the source, the increase will cover the prices for the domestic and export markets, but in a first stage it will not cover the price of wire rod for both markets.
“Wire rod prices are already too high in the domestic and export markets,” the source said, adding that he believes that such prices will also certainly increase, probably still during July.
With the increase, wire rod of the drawing grade would be exported in average at $540/mt, while for the mesh grade the base price would be $523/mt, both FOB conditions.
In May, ArcelorMittal exported wire rod in average at $443/mt, while Gerdau exported at $381/mt, FOB conditions, price deals probably closed in March.