Brazilian producers remain negotiating wire rod of the mesh grade for export in a price range of $600/mt to $610/mt, FOB conditions.
The price now exceeds one month of stability, reflecting a price level slightly higher than international prices, as domestic producers remain hit by the country’s highest power rates in recent years, squeezing margins at EAF plants.
In Brazil, the vast majority of long products comes from EAF plants, with the exception of CSN, which has the flexibility to produce longs either via the EAF or integrated technologies; however, CSN’s longs production is dedicated to the domestic market.
Wire rod is currently sold by distributors in the Brazilian domestic market at BRL 3,880/mt ($1,192/mt), ex-works, full taxes except IPI.
USD = BRL 3.256 (December 4)