After securing a temporary exemption from the US Section 232 tariffs on steel imports, Brazil is reportedly taking advantage of comparably favorable shipping times to offer wire rod to the US that will arrive before the May 1 exemption deadline.
Sources say offers for imported wire rod in the US domestic market from Brazil are around $33.00-$35.00 cwt. ($660-$700/nt or $728-$772/mt) DDP loaded truck in US Gulf ports, which are not only attractive compared to rising US domestic spot prices—currently at $37.50-$38.00 cwt. ($750-$760/nt or $827-$838/mt) ex-mill—but the offers also have an advantage over longer shipping times from European sources that might be subject to the 25 percent import tariff if they arrive after May 1.
While Brazil might currently be one of the top viable sources for imported wire rod in the US, traders tell SteelOrbis they are optimistic about the possibility of some offshore sources securing permanent exemptions to the Section 232 tariffs, as South Korea did this week during a renegotiation of the US-Korea Free Trade Agreement. Permanent exemptions would bring much-needed clarity and certainty to the import market, sources say.