A source from a Brazilian steel distributor told SteelOrbis that steelmakers have not yet increased wire rod prices.
Current price points for both domestic and export were supposed to increase, sources note, which would bring ex-Brazilian wire rod prices in line with other longs products, which increased by eight percent in July. The postponement in pushing through an increase in wire rod prices may be part of a larger market strategy, one source continued, which may be tied to a possible loss of competitiveness for export material against international prices. With regard to the domestic market, the delay of a price is largely believed to be linked to lesser-priced imports material.
The source further mentioned that he believes Brazilian wire rod prices will increase over the next few weeks.
With the increase, export wire rod of the drawing grade would be available at approximately $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.