As previously announced, a major distributor in southeast Brazil confirmed to SteelOrbis that wire rod prices effectively increased in the domestic market by 12 percent on April 1, 2015 with the mesh grade currently sold CFR, full taxes, at BRL3,140/mt ($1,003/mt) and the drawing grade at BRL3,511/mt ($1,122/mt), same conditions.
The prices already increased by 7 percent this year to compensate for the inflation in 2014, while the 12 percent increase now restores the price to a level in line with the imported product after clearing customs, increased in BRL terms due to exchange rate variation.
In March, the Brazilian exports of wire rod went up from February by 20 percent to 13,000 mt, at an average FOB price 8.7 percent lower, $578/mt, pointing to the mesh grade exported at $505/mt FOB and the drawing grade exported at $744/mt FOB.
Meanwhile, the country’s imports of wire rod have reached a mere 700 mt in March, from a peak of 11,500 mt in October 2014, following a downward trend dictated by the devaluation of the local currency over the period.
$1 = BRL 3.13