A major producer in Brazil’s southeast region told SteelOrbis that wire rod prices are still available in the domestic market at the same prices over one month: BRL2,803/mt ($861/mt) for the mesh grade product and BRL 3,135/mt ($963/mt) for the drawing grade product, both CFR, full taxes terms.
In $ terms, however, the figures went down by 12 percent, reflecting the devaluation of the BRL over the period.
In February, Brazil exported 10,800 mt of wire rod at an average FOB price 11 percent higher than in January, at $633/mt, almost entirely of the mesh grade.
According to an exporter, the exports of wire rod over the last months are related to sales by the local producers to associated companies abroad, as the local market, in spite of the reduced demand, remains more attractive in price terms.
Such high domestic prices are still pushing imports of the product, which reached 3,800 mt in February, 21 percent less than in January, at an average price 21 percent higher, $684/mt FOB, pointing to the mesh grade imported at $501/mt FOB and the drawing grade imported at up to $734/mt FOB.