Brazil exported 37,500 mt of wire rod in July, 19 percent more than in June, at an average FOB price 12.7 percent lower, $442/mt.
Figures by the country’s ministry of development, industry and foreign trade, MDIC, indicate the mesh grade product exported at $414/mt and the drawing grade exported at $472/mt, FOB average prices.
The main exporter was Gerdau, (30,800 mt), followed by ArcelorMittal (6,500 mt).
The main destinations were the EU (25,037 mt at $414/mt), Latin America (8,400 mt at $471/mt), the US (2,100 mt at $601/mt) and Africa (1,100 mt at $396/mt), all FOB conditions.
The main factor behind the increased volume was a sale by Gerdau to a Portuguese client, 22,200 mt at $412/mt FOB, the first such sale to the country in 2015.
In the Brazilian domestic market, wire rod mesh is sold at BRL2,289/mt ($664/mt), while the drawing grade is sold at BRL3,220/mt ($934/mt), both CFR, full taxes conditions.
A source from a major exporter told SteelOrbis that all wire rod producers are searching for alternative markets to the product, as the domestic demand was reduced due to the poor performance of the local economy, while the devaluation of the BRL vis-à-vis the $ has increased the competitiveness of the local production.
1 US$ = BRL 3.44 (August 10)