A major steel distributor in southeast Brazil told SteelOrbis that its wire rod sales went down on yearly basis by 4 percent in April, following a 12 percent price increase earlier this month that resulted in price levels of BRL,3140/mt ($1,030/mt) for the mesh grade and BRL3,511/mt ($1,151/mt) for the drawing grade, CFR full taxes conditions.
According to the source, the reduced volume sold is in line with the company’s expectations, which have taken into consideration the impact of suspension of construction works linked to the oil company Petrobras, currently under investigation for accusations of corruption by the previous administration.
“The suspension of works linked to Petrobras has a multiplying effect on the economic activity, as it spreads over contractors, some of which are also under investigation,” the source said, adding that the new prices had no significant impact on the reduced volume of sales.
In March, Brazil exported wire rod mesh FOB at $505/mt and the drawing grade at $744/mt FOB.