Exports of wire rod by Brazilian producers reached 3,700 mt in October, 82 percent less than the 20,000 mt of September and the lowest figure in one month over recent years, according to the country’s ministry of development, industry and foreign trade MDIC.
The downturn reflects zeroed exports to the US against 15,700 mt in September, while exports to South American countries went up by 465 percent to 2,900 mt and exports to Asia went down by half to 750 mt.
The average FOB price went up by 7 percent to $665/mt, almost entirely of the mesh grade product.
In the Brazilian domestic market, wire rod mesh is sold CFR full taxes at BRL2,620/mt ($1,022/mt), while the drawing grade product is sold at BRL2,930/mt ($1,143/mt), stable in BRL in three weeks but slightly reduced in US$ due to the devaluation of the BRL, a major producer told SteelOrbis.
Meanwhile, the country’s imports of wire rod went up by 31 percent to 11,500 mt at FOB $629/mt conditions, originated from Latin America (6,300 mt), Asia (3,400 mt) and the EU (1,800 mt).
A major trader told SteelOrbis that the Brazilian exports of wire rod are currently limited to exports of the Brazilian producers to associated companies abroad, while imports of the product remain fueled by the high domestic prices.