Exports of wire rod from Brazil are currently limited to ArcelorMittal and Gerdau, as the Votorantim Group made its last export of the product in April 2016, while CSN actually has kept its line of long products dedicated to the domestic market, since its start-up in 2013.
The smaller producer Sinobras, in the northern state of Para, is also dedicated to the domestic market.
Sources linked to the steel producers said that low prices remain the main hurdle for exports of steel products from Brazil, as in the more rewarding domestic market, wire rod is sold at the equivalent to $695/mt for the mesh grade and $778/mt for the drawing grade, both ex-works conditions, no taxes included.
The most recent deals for the export of the mesh grade are closed at $524/mt, while the drawing grade is exported at $540/mt, both FOB conditions.
In August, for price deals probably closed in June, the mesh grade was exported in a range of $420/mt to $449/mt, while the drawing grade was exported at $480/mt, both FOB conditions.